Select a building for a smithy. The building must be large enough for all equipment. Install several ventilation windows. Don't install the windows to allow a cross breeze, as the breeze will blow out the fire and blow smoke into your face when working. To permit extra ventilation, install a sliding door that opens easily.
Mix the concrete, then, pour the concrete on the building floor and level. Tamp the concrete to remove air bubbles. Laying down concrete will make the floor fire-proof.
Measure the width of the chimney. Cut a hole in the ceiling for the chimney. The hole should be the exact size of the chimney to prevent water leakage. Install the forge and the chimney. Seal cracks around the chimney. Install the forge and chimney in an area that allows plenty of working space.
Place all other tools and equipment in the building. Arrange the forge, anvil and post vise triangularly, for quicker blacksmithing. Put the quench bucket close to the anvil. The anvil horn should stick inward, so it is not in the way when working. All tools should be within four steps of the forge, but still allow enough working space.
Install a tin roof to the building. This adds proper insulation and keeps the building temperature down.