How do I set up a woodworking shop?

The first thing you want to do it not buy a whole lot of tools. A much better approach would be to buy a bunch of woodworking plans. This could be something like Teds Woodworking that has more than 16.000 different woodworking plans.

Pick out different plans that people can work from in your woodworking shop. Then see what tools would be needed to get started. After you have been set up a while you can start to expand your tools.