Just how small?  Will you have an extra bedroom for your shop or will you be doing woodworking in your living room?  Do you have to put the projects and tools away every time you want to entertain or will you leave everything set up all the time?  A while back FWW had a video tour of a shop in Japan that was smaller than small.  I'll try to find it and get back.  Found it...  shows what can be done in a small space but this shop was not on a small budget so no help there.
I set an initial budget of $10,000 to build the shop – everything from studs and drywall to hand tools and machinery. The final number was over by $1,000, but I’m still very happy with the result. The shop is now my haven, with a good sound sys­tem and good lighting. Every time I go back into the shop, it is exactly the way I left it, because it is my shop!

Many beginners trying to get started in woodworking take one look at their budget and worry how they can afford to buy a whole shop full of power tools to get started. Fortunately, one doesn't have to spend a fortune to get started. There are really only seven woodworking tools that I would recommend any beginning woodworker have on hand from the start, and most are relatively inexpensive. However, with these seven tools, a beginner can tackle quite a number of projects.

Build projects from wood the fast, strong, easy way using pocket-hole joinery and the Kreg Jig® R3. With the Kreg Jig, all you have to do is drill a hole in one of the pieces you want to join. Then drive in a Kreg Screw. The self-tapping tip draws the joint together and holds it tight, so you can create beautiful, durable projects quickly. The portable Kreg Jig R3 features two hardened-steel drill guides, built-in guides that make it easy to set up on a wide range of material thicknesses, and a clamp pad—all in a compact carrying case.

You’ll need a long screwdriver with a square blade that is very heavy duty. This gives you a lot of torque. You’ll also need a small and medium slot screwdriver. For working on cabinets or tight places in woodworking, you’ll need a screwdriver with a thin shank so that you can reach screws that are inside of deep holes. This is accomplished with a cabinet screwdriver. Get a couple of medium Phillips head screwdrivers, and a stubby one too, for those tight places. You may also want a ratcheting screwdriver.


Ok, the leap from $1,000 to $2,500 is a big one.  I certainly didn't make it at one time.  It took me years.  But I know folks that decided they wanted to get into woodworking and dropped at least $2,500 getting themselves outfitted.  When you do make the jump, the thought process becomes much less about making sure you can get the job done and becomes more about having quality tools to get the job done.
One tool that I’ve used over and over when my clamps were too small,  is ratchet straps. They come in handy when trying to glue several pieces together, like when making a table top out of 4 x 4’s. One problem though, is that when using ratchet straps on smaller pieces of wood, or longer boards, it’s possible to warp the piece you’re trying to make. However, if you’re careful, a ratchet strap can stand in for a clamp or two.
Pocket holes may get a bad rap from “fine” woodworkers, but they are the most accessible and versatile form of joinery for any woodworker. You will find tons of pocket holes in the highest end custom cabinetry kitchens, so I don’t hesitate to use them when needed. They are great for quick DIY furniture projects like my pub table here. I actually own bow the low and medium budget options below because they both have their place in my shop and I can choose which to use depending on the application. If you’re not sure what size pocket hole screws you will need to start out with, here is the variety pack that I first purchased.
Frank is an architect/woodworker who creates videos with stunning visuals that are intended to inspire you. Frank uses his top-notch filmmaking skills to fast-forward himself as he works on a project. He even uses stop motion—an animation technique that enables him to manipulate objects (such as chisels and clamps and block planes) to make it appear they are moving on their own.
This style of saw will provide more power than a contractor-type saw and have the high-quality rip fence you need to do good work. However, because they are favored by professionals and serious amateurs, cabinet saws are harder to find on the used market. Scour the classifieds and online sales (be sure to check industrial auction sites as well), and do some networking. Check the bulletin board at your hardwood supplier and ask the proprietors if they know of anyone selling a saw. Also call local cabinet shops. They sometimes have a surplus tool sitting idle that they’d be willing to sell. Take your time in this step. A careful investment will pay dividends in the long run, but a well-intentioned compromise can cause long-term frustration.
Not only is having a full time job is hard to do woodworking, if you have a family as well, then that is another thing that you are going to have to juggle as well.  For me its a no brainer.  I always choose my family over my hobby of woodworking.  But when my family or job does not need my presence, that’s when I am free to let my brain just run loose on new ideas of what to build next.
Before I give you my list, I am assuming (and yes, I know what assuming does) that you already have a tape measure, screwdriver and a hammer. These are common household items that most people (woodworkers or not) keep around the house.  If you don’t have one, they are a few bucks each and WELL worth the investment.  AND they are my favorite types of stocking stuffers—even if it is just July, it’s already on my mind 🙂
I place the band saw first in my order of purchases, because I consider it the heart of the shop. Band saws are very safe tools for ripping, re-sawing, cutting curves and more because all of the force is downward, virtually eliminating any chance of unexpected kickbacks. I wanted a saw that had a strong back, dynamically balanced cast iron wheels for smooth operation and flywheel effect, 12" depth of cut, good dust extraction design, a large table and a solid fence. After shopping around, I settled on the General International Model 90-170 14" saw. It is very smooth, comes with an Excalibur fence, and it is light enough (133kg) to move into your basement without crushing someone.
​One tool that has been notably missing from the earlier builds is a router.  There are so many reasons to own a router that I am not going to even try to list them.  But if you want to get the creative juices flowing, take a look at this Pinterest page.   The important thing to know is that this versatile tool can help you accomplish a number of tasks, everything from finishing edges to cutting dove tails.  
But until then, I’ve been thinking of other ways to use my hands and create things.  (Even though many of our saws and tools have been stolen.) But I’m feeling a little antsy to make some quick projects, because creating makes me extremely happy…..so we’re calling this surge in me to create something simple, THERAPY.  In fact, I need to call up a few friends and have them make some with me because friends and creating is a favorite combo of mine!  (Any out of town-ers want to fly in?! ;) )

The best advise I can give you is to get and read the book "Hand Tool Essentials" by the staff of Popular Woodworking before buying any tools.  It is sort of an inexpensive crash course in hand tools.  Chris Schwarz's book "The Anachrist's Toolchest" is another good source of information on handtools that I found to be a fun read.  Use the internet to learn all you can about a tool before buying.  The tools you need are dictated by what you want to build.
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