Make a list of key features you want to include, such as storage, seating areas and a bathroom. Measure the basement and draw it to scale on graph paper with 1 inch representing 1 foot. Check with your local building inspector to determine safety code requirements for items such as an egress window, and obtain a permit if necessary.
Select the type of flooring you want for the finished basement. If you choose wood flooring, install a wood subfloor over the concrete basement floor with a network of pressure-treated 2-by-4-inch boards and ¾-inch tongue-and-groove plywood. A plastic sheathing moisture barrier between the concrete floor and the subfloor will reduce moisture problems.
Determine where electrical lines and plumbing will be needed, and incorporate access to water heaters, meters, air conditioning units and the like. Hiding overhead vents and plumbing can sometimes be achieved by framing a box around the perimeter of the ceiling to create a tray ceiling.
Place rope lighting in the molding around the tray ceiling for an overall, indirect lighting effect. Add additional lighting such as can lights, lamps and sconces to ensure the basement is well lighted.
Install a dropped ceiling on a metal grid to provide access to plumbing, electrical wires and vents. A tray ceiling can have the suspended or dropped ceiling in the center portion.