I had all my supplies, sewing machine, and cutting table crammed into a little alcove off my living/dining room. One day I looked at the dining room table and chairs, which were a little worse for wear, and decided to give them away on freecycle. After that, I switched rooms - I moved my studio into the living/dining room and moved my couch, recliner and TV into the alcove. I live alone and don't cook, so wasn't worried about dinner parties! I love having the space to work and I have great light with patio doors and the dining room overhead fixture directly over my work table. Which is made with deep file cabinets stacked to counter height with a 60x72 table top covering them. Perfect!
I arranged my sewing machine, design wall and storage carts on another two walls of the room and have a wall of completed quilts that I haven't sold or given away on the 4th!