Empty out the shed completely to give yourself enough room to work and avoid breaking anything you've stored. This also gives you an idea of how much space with which you have to work and gets the creativity flowing. Imagine what you might like the refurbished unit to look like.
Ensure that your shed is in safe and suitable condition to endure the reconstruction process. Tighten all screws, nuts, bolts and hinges and pound in any exposed nails. Check for rotted or broken planks of wood in the floors, walls and ceiling and replace them where necessary.
Install windows and doors. If you plan to spend significant time in your shed or are using it as an outdoor room, install appropriately sized windows to create a view and capture natural sunlight. This also assists in creating ventilation when working with hazardous chemicals such as paints and varnishes. If the sole purpose for your shed is storage, you can skip this step.
Insulate the interior using a staple gun to attach insulation to the exposed wooden walls between the support beams. Cover the insulation and beams with drywall to conceal them. Drywall provides a clean, flush surface, giving your shed's interior a neater appearance and allowing for paint or wallpaper application.
Install desired flooring. A new floor can do wonders for the appearance of any room, even a shed. Decide what type of flooring you prefer, such as hardwood, linoleum or vinyl or ceramic tile. Install your desired flooring and finish with base boards and rounded quarter panels all around the base of the walls.
Prepare the exterior for painting. Scrape off any chipping or peeling paint from the exterior of your shed. Remove any rough edges of tightly adhered old paint to create a smoother surface using a medium grain sandpaper. Apply a coat of base paint to the entire structure and allow it to dry for 24 hours.
Add trim to windows and doors. If you installed or replaced doors and windows, install any remaining exterior trims. This might include basic window and door frames, or other adornments such as flower boxes or awnings. Proceed to the inside of the shed and install any interior window and door frames.
Paint and decorate your shed. Once all of the rehabilitation chores are completed, you can proceed to the decorative stages of the project. Choose your desired color scheme and paint the exterior of your shed to create an eye-pleasing outside appearance. Indoors, consider a paint or wallpaper pattern that blends with and complements the exterior of your newly remodeled shed.