For years my sewing room was a regular depth (not walk-in) closet with bi-fold doors. Inside was a small desk with my sewing machine on it. My hubby always planned to hang a light under the closet shelf, but that never happened. I used a bright, clip-on desk lamp for lighting. The drawers in the desk and boxes on the shelf stored lots of supplies in an organized way. The space at both ends of the desk that went all the way to the floor were good places to put things like packages of quilt batting. With limited space you can't let your fabric stash build up. Buy for projects and get them finished so things don't build up too much. I don't think space is so much an issue as learning to be organized. There was room to slide my ironing board in beside the desk and space in the room to set up the ironing board which was used as work space as well as ironing. The best part is I could close the closet doors and the clutter of my current project disappeared!!!