A workspace is simply a folder on your computer that Claude Code works inside. Everything you ask Claude to help with -- writing, research, document creation, project tracking -- happens within that folder. Claude reads the files and subfolders inside it to understand who you are, what you're working on, and how you want things done. The folder structure you create is not just organisation for your own benefit; it is the foundation of how well Claude understands your business.
The solo worker setup is the right starting point for most individuals. You have one primary workspace: one folder, one GitHub repository (an online backup and version history for your files), all your work organised as project subfolders inside it. This guide walks you through setting it up correctly from scratch.
What you will need
- Claude Code installed and authenticated (a paid Claude plan is required)
- Git installed -- this is a tool that tracks changes to your files over time and enables cloud backup via GitHub
- A text editor (VS Code is recommended; Claude Code integrates directly into it)
- A GitHub account (free) if you want remote backup and sync across devices
Step 1: Create the workspace folder
Create a folder in a location you can find easily. A common choice is your home directory or Documents folder. Name it something that reflects your business -- for example, my-business-os or jane-smith-workspace. Avoid spaces in the folder name; use hyphens instead.
Open a terminal (on Mac, search for Terminal in Spotlight) and run:
mkdir ~/my-business-os
cd ~/my-business-os
This creates the folder and moves your terminal session into it.
Step 2: Initialise Git
Git is a version control tool -- it keeps a history of every change you make to your files, so you can always go back to an earlier version. Think of it as "track changes" for your entire workspace, not just one document.
git init
This turns your folder into a Git-tracked workspace. You will now see a hidden .git/ folder inside it (hidden folders start with a dot). You do not need to interact with this folder directly -- Claude Code handles Git for you.
Step 3: Create the folder structure
Create the standard subfolders:
mkdir -p .claude/state .claude/rules .claude/skills .claude/hooks
mkdir "Claude Projects"
mkdir Documentation
mkdir Scripts
Each folder has a distinct purpose:
- .claude/ -- Hidden configuration folder. Claude Code reads everything inside here at the start of every session. This is where your instructions, rules, and project registry live.
- Claude Projects/ -- One subfolder per piece of work. Each project gets its own folder with a CLAUDE.md file (a short briefing document that tells Claude what this project is about).
- Documentation/ -- Reference materials, templates, and archived files you want to keep but are not actively working on.
- Scripts/ -- Any automation scripts you build to handle repetitive tasks.
Step 4: Create your CLAUDE.md
CLAUDE.md is your AI's instruction manual. Claude reads it at the start of every session to understand who you are, what you do, and how you want it to behave. Create it at .claude/CLAUDE.md. A minimal starting version:
# CLAUDE.md
## About Me
[Your name] -- [one sentence describing your work, e.g. "independent marketing consultant working with SMBs"]
## Primary Role
You are my personal assistant. Help me with client work, writing, research, and day-to-day business tasks.
## File Organisation
- Project work: Claude Projects/[P###-Name]/
- Documentation: Documentation/
- Scripts: Scripts/
## Language
UK English only.
Do not try to make this perfect on the first attempt. Write a working draft and refine it as you learn what Claude needs to know about your work.
Step 5: Create state.json
State.json is your project registry -- a structured list of everything you are working on. Claude reads it to know which projects are active, what the current status is, and what needs attention. Create it at .claude/state/state.json:
{
"version": "2.0.0",
"workspace": {
"name": "My Business OS",
"id": "my-business-os",
"type": "personal",
"githubRepo": "your-github-username/my-business-os"
},
"projects": [],
"nextProjectNumber": 1
}
Once set up, you add projects using Claude's /newproject command rather than editing the file manually. Claude maintains the registry for you.
Step 6: Add a rules file
Rules are instructions Claude follows automatically in every session, without you needing to repeat them. Common examples: always use UK English, never send client documents without asking first, always check for duplicate projects before creating a new one.
Create a basic rules file at .claude/rules/communication.md:
# Communication Standards
## Language
UK English only -- organise, colour, behaviour, analyse.
## Tone
Direct and factual. No filler phrases. Get to the point.
Add more rules files as you discover conventions you want Claude to follow consistently. Each file in .claude/rules/ is loaded automatically at session start.
Step 7: First-session verification
Open the workspace folder in VS Code, then open the Claude Code panel (Ctrl+Shift+P on Windows/Linux, Cmd+Shift+P on Mac, then search for "Claude Code"). Claude Code will read your CLAUDE.md on startup.
Ask Claude: "What workspace are you in and what do you know about my setup?" A correctly configured workspace will return a summary of your CLAUDE.md, confirm it found the rules files, and list any projects in state.json. If it responds with generic answers that ignore your CLAUDE.md content, the file path is likely wrong -- verify it is at .claude/CLAUDE.md, not in the root of the workspace.
Common mistakes
| Mistake | What happens | Fix |
|---|---|---|
| CLAUDE.md in root instead of .claude/ | Claude may not pick it up consistently | Always use .claude/CLAUDE.md |
| Saving project files in the workspace root | Workspace becomes cluttered; hard to find things | All project work goes in Claude Projects/P###-Name/ |
| Writing every instruction in CLAUDE.md | CLAUDE.md becomes bloated; hard to maintain | Move detailed behavioural rules to .claude/rules/ files |
| Not creating project CLAUDE.md files | Claude has no project-specific context; generic responses | Every project folder needs a CLAUDE.md with a brief description |
| Spaces in folder names | Terminal commands require quoting; causes errors | Use hyphens: P001-Website-Rewrite not P001 Website Rewrite |
Start lean, then expand
Do not try to build the perfect workspace before you start working. Create the structure, write a minimal CLAUDE.md, and begin. You will quickly discover what instructions Claude needs that you forgot to include, and what you wrote that it already knows. Refine as you go.
