#1: Identify your priorities.  Do you like to entertain and how many?  Do you want a space to escape with a book or coffee and the newspaper in the morning?  Are you interested in growing your own food? Perhaps you just want a low-maintenance area that won't get used much.  List how you want to use your space to get started.  If you have multiple priorities, you may have to identify just one or scale back on entertaining 6 to 4 to have room for that herb garden.

#2: Consider the logistics.  Before you buy anything make sure that you have room for the table you are looking at - with chairs (and people in them).  Or that your garden will drain properly and gets enough sun.  If you have to climb five sets of stairs with all your dinner party are you going to do it?

#3: Go for it!  Start your dream space, no matter how small.  Think of rugs, lighting and accessories to make the space special.