I agree that even at 12x12, things'll be "cozy" inside. That's OK. Keep in mind that this will be a general purpose hobby shed, not just a wood working shed. Even 12x8 would be plenty big enough for building 1 meter wingspan bungee launched RC gliders. And for the electronics projects I do, I only need enough workbench space to do some soldering with a 3rd hand (for electric guitar pedals). If I need more room than the shed offers for wood working projects, I'll just roll the table saw down a ramp and do my cutting outside in the sun.
There are a number of tricks to using a router. First, the bit spins in a clockwise direction, as you look down at the router from the top. This means that when you cut with the router from left to right, the bit will tend to pull the router away from you, and when you route from right to left, the router will pull towards you. So, if you're hooking the edge guide along the near side of the board, route from left to right, and when you're hooking it along the far side of the board, route from right to left. Second, always test the position of your bit on scrap material. Your odds of getting it exactly right by eye are nil. Third, don't cut more than 1/4" deep on a single pass. We want a 3/8" deep grove, so make your first pass at 3/16", or thereabouts, and make a second pass to reach the full depth.

Lay a leg flat on your work surface, with the countersink side of the thru-holes down. Stick a piece of threaded rod in each hole. Take a stretcher that is marked to have one end adjoin the top of this leg, stick a dowel center in its dowel hole, line it up against the leg, using the threaded rod for positioning, You want the top of the stretcher to be even with the top of the leg, or just slightly above it. Give the end of the stretcher a whack with your rubber mallet. This will leave a mark indicating where the matching dowel hole in the leg needs to be drilled. Repeat with the lower stretcher than adjoins this leg. Then repeat for the other leg that will form this trestle, and the other ends of the two stretchers.

The source above is not exactly a tutorial, but it gives you a basic idea of how the author built a Quirky Pallet Art to enhance the look of their old house. You can also find another tutorial at the link below. It shares a step by step procedure for making a wooden pallet sign. The final product is not exactly the same as the one above, but the basic idea is the same.

We have 4 newly expanded Classrooms, 3 state of the art labs with over $275,000 of new machinery, and $600,000 spent on new exhaust and compressed air systems. We have 4 new CNC production machines, a Haas VF-3 CNC Router and a NEWCNC 4×8 multi head machine and 2 Laguna IQ Routers. Even our shop stools (with cushioned backs) are brand new. We have new course offerings such as our Computer Design Sketchup Class and 8 new Certificate Programs you can choose from.

Synopsis: No room in the garage? Basement not an option? Consider what Ken St. Onge did when he needed shop space: He bought a prefabricated shed and converted it into his full-time woodshop. Because a pre-built shed doesn’t need a cement foundation and is built in a factory, it’s much less expensive than building an addition or stand-alone shop on your property. It can have taller ceilings than a garage and bigger doors than a basement, both big pluses for a woodworker. You can put a shed just about anywhere, too. Here’s a soup to nuts look at Ken’s experience, so you can gauge whether a shop in a shed is right for you.