The level of sophistication in a $250 shop is significantly less than a $2,500 shop. But keep in mind even a $2,500 budget is entry level. Acquiring a shop full of the perfect tools for each and every job takes a life time. But that doesn't mean that producing quality work takes a lifetime. One of the most enjoyable aspects of this hobby is the constant need to solve problems in order to produce good work.
This will be a personal matter, depending on whether it will be helpful for finishing or sharpening. However, it is a good idea to look beyond your current use of this space to the next owner. Would it be beneficial to add plumbing hookups so that the shop could someday be an apartment, or an art studio, or an extension to your house? It could add to the resale value of your house to be able to create as flexible an area as possible by roughing in a bathroom and even a kitchenette area if you can. If this is done when wall cavities are open or before the slab is poured, your forethought could pay dividends but not cost much up front.
Back in the 1970s and treeplanting in Oregon, I and Tony Lessa lived for two weeks at a time in the back of my 1954 Chevy PU. The canopy was just a simple shell with the board across next to the cab. After the fourth or fifth trip out in the season the accumulated funk was too much. You can imagine two hard-working guys in very muddy and cold conditions coming in after work with dirty wet gear. Pretty desperate circumstances but before Reagan trashed the treeplanting industry our coop ( Hoedads & then Second Growth) was making good money so we endured the hardships. It works for the young. Now, at 76, I find sleeping two of us between the wheel wells in a Dodge G. Caravan (seats removed) much too crowded. I think I will tent and the wife can have the van.
Then there are material considerations, such as how to bring full-size sheets of plywood home to cut down to size (you don't). And safety and cleanup are two more concerns: Proper ventilation and dust collection, a cinch in a larger shop, can be quite a challenge (and a potential health hazard). Nevertheless, you can set up a great wood shop in a small space, and we'll show you what you need.
They say nobody ever started a small business out of a love for numbers, but if you really want to stay the course, you’re going to want to fall in love fast. It’s only by keeping detailed accounts and tracking your business’ numbers over time, (net sales, cost of goods sold, and average transaction size) that you’ll start to gather the actionable insights you need to make intelligent business decisions.