Select a relatively flat spot in your yard. Stake out the area for your shed on the ground. Add 1 foot or so on each side for working room.
Dig out the space for the shed to a depth of 4 inches. Compact the soil well, using a hand tamper or heavy-duty tamping machine.
Add 4 inches of crushed rock or gravel. Rake the materials so that the bed is level.
Make the skids for the shed. Cut four-by-four lumber to size, according to the dimensions of your shed.
Position the first skid so that it sits 12 inches in from the outside edge of the shed's floor. Position another skid 12 inches in from the opposite outside edge. Lay the rest of the skids out between these two end skids, parallel to one another. Space the skids evenly at 36-inch intervals.
Nail your shed's floor joists directly to the foundation.