Your home workshop should be in a relaxed, open space with enough ventilation. Garages and cellars are the most common locations for a home work space, but be sure that the lighting is good and the neighboring area is kept reasonably clean.
In a space of about 2 by 2 meters (7 by 7 feet), you can create a good-looking comfy bicycle repair station. This permits for a workbench about 120 to 180 cm (4 to 6 feet) long by 60 cm (2 feet) deep for resting tools, small parts and a stock of lubricants and cleaners. Opposite the workbench, you will want a work stand to hold your bike. An ideally placed work stand will hold your bike about 1 meter (36 to 40 inches) from the workbench, giving you enough room to move while still keeping both bike and bench within easy reach. On the back of your workbench, a pegboard with hooks to hold your most regularly used tools will keep things prearranged and well-organized. Paint the pegboard a light color to make your tools more visible, and then outline the tools with a black marker on the board to help remind you where things go and what isn't put away. A short piece of 4 x 2 (2 x 4) with holes bored through makes a great storage solution for screwdrivers, loose hex keys, pens, picks and other small tools. Lastly, a shelf under your workbench is handy for housing a small toolbox with less commonly used tools, a small trash bucket, a rag bin and some small bins for hardware and spare parts.
Hardware stores sell kits for building workbenches just like the one described, but the sturdiest are easily constructed with just a few 4 x 2s (2 x 4s) and a sheet of 2-cm (3/4-inch) plywood (Spend a little extra on exterior-grade plywood. It's more resistant to liquids that can cause your workbench top to warp and peel.) Build your workbench about 85 to 90 cm (34 to 36 inches) tall (or a little higher or lower if you're over 180 cm [6 feet] or under 150 cm [5 feet] tall). If you have a larger area to play with, go ahead and build your workbench 240 cm (8 feet) long, and revel in all that extra elbowroom.
It's easiest to work on your bike when it's suspended a couple of feet off the floor. This can be achieved in a number of ways. A system as simple as two cords hanging from a rafter with hooks to hold your bike at the correct level or a rack Servicing your bicycle is easiest when the bike is held off the ground by a quality work stand made from scrap 4 x 2s (2 x 4s) to hold your bike up by the frame (the same way a rack on the back of a car works) serves just fine for the purposes of most simple maintenance tasks.
Just be sure that there is clearance for the crank and wheels to spin freely. For frequent use or for more complex jobs, though, nothing beats a proper bicycle repair stand. Ready-made stands come in versions to suit anyone from the most casual home tinkerer to the seasoned pro. They work by clamping onto the seat post or a frame tube (be careful and read the manual — some of these clamps are powerful enough to crush a frame if not applied properly) and allow you to rotate the bike up or down to bring the area you are working on closer to you.
All this talk of garages, basements and extra space may be making the apartment dwellers among us feel left out in the cold, but there's no need to despair. Folding workbenches and repair stands can disappear into a closet quickly and easily, along with a small tool bag. Pick up a small linoleum remnant from a flooring store and you can even save your carpet (and security deposit!). Lay it down when working on your bike; when you're finished, wipe it down and roll it up to hide away with your portable bike shop.
It is possible that you previously have many of the basic hand tools you will need to get started working on your own bike. If not, things like adjustable spanners, pliers, screwdrivers and combination spanners can be most economically purchased from your local hardware store. Of course, if you like to 'keep it in the neighborhood', bicycle-specific tool manufacturers like Pedro's and Park make shop-quality versions of these, as well as all the specialty tools you may eventually want or need. We have provided lists of what makes a 'good' assortment of tools for the casual home mechanic and what could be an 'ultimate' assortment for those who want to be entirely self-sufficient. To maintain a fleet of bikes requires a fleet of tools. This assortment is more than the average home mechanic would likely need, but it would make a good start for an aspiring pro mechanic. You'll also need cutting oil (if you plan to tap or chase threads), electrical tape, grease, solvents, spray tube, thread adhesive and wax. If you're not sure where you fall, start small and add tools to your collection as the need arises.
Now that your workspace is systematized, you may want to create a list of episodic maintenance tasks to hang next to your preferred cycling calendar.