Once upon a time, a shed was a shed was a shed. But today, there's a vast range of options at your disposal.

The most economical are prefabricated structures made of a sturdy steel frame clad in Colorbond or Zincalume. They come in an array of sizes, from slimline garden-equipment storage sheds to three-car garages and larger, and can be delivered to your door, ready to build. It's easy enough to erect them yourself, or you can call in an expert who'll do the job in a day or two. "The benefits of steel are its value for money and it's unbeatable for durability," says Richard Gray, of Spanbilt. "It's a very robust material, very versatile. It will go the distance."

If you'd prefer the look of timber for your outdoor structure, there is also a wide selection of timber sheds and garages you could consider. Again, the options extend from prefabricated to custom designed. "The most popular timber sheds we make are those constructed from untreated timber," says Scott Madden, of Design A Shed. "They're designed to be flatpacked, so customers can put it up themselves."

Cheaper prefabricated timber sheds come with a skillion, or flat, roof. Pricier options will have pitched or gable-style roofs.

Before you buy, think carefully about how you want to use the shed and make sure it is suitable for the purposes you have in mind for it.

"Think about the dimensions and the openings you'll need," says Gray. "There's no point buying a shed to store a ride-on mower if it won't fit through the door."

You'll also need to check with your local council as to whether you need planning approval to build your shed or garage.

"As a rule of thumb, you don't need a permit for anything under 10 square metres, but that can vary," says Gray. "For example, all outdoor structures need approval in cyclone-prone areas, and some regional councils even restrict what colour steel can be used." Also, choose the site location carefully. You can use a poured concrete slab or raised timber floor foundation, but you will need to consider drainage. If you're buying a prefabricated shed, check that the supplier has pre-tested all major connection points for structural adequacy.

Fittings and fit-outs

The only limit to the level of finishes and details on your shed or garage is your budget. If it's used just for storage, there's no need for fancy flooring or even wall lining. If it's going to be used as a workspace, then natural light and ventilation, through skylights and windows, is vital. It would also be wise to consider some extras, like insulation or ceiling fans, to make it more comfortable to spend time in.

Most outdoor structures will need some form of artificial lighting, even if it's just a bare lightbulb, so electricity connection is a must. A couple of power points inside are essential too, to enable you to use power tools or a vacuum cleaner.

Interior fit-outs like shelving or workbenches are also worth considering at the planning stage. "We can supply some basic components, like shelves and benches, or you can get a local handyman to put in any custom inclusions," says Scott Madden, of Design A Shed.

In terms of style, Colorbond cladding comes in a wide range of colour options, and timber can be left natural, or stained or painted. "In very damp areas, it's better to use a protective stain or paint the timber so it will last longer," says Madden.

There are some interesting products on the market for garage and shed floors, too. Pro Garage Flooring is a heavy-duty plank-based flooring product constructed from recycled tyres, plastic bottles and fibreglass. According to the supplier, Garageworks, using this product on the floor of one double garage will keep 25 old tyres out of landfill.

Clean break

Sheds and garages are notoriously dusty and dirty, so it's a good idea to keep maintenance in mind when you're planning your new structure. Ensure your waterproofing and drainage is effective to avoid leaks and constant dampness (especially if you intend to use the space for storage). Seal any draughts or gaps so dust and leaf litter won't blow in. Plan storage with lids, so tools and items stored in boxes don't attract extra dust. And if your floor is concrete, you might even consider investing in a high-pressure cleaner or outdoor vacuum cleaner. Kärcher has a big range.

Man caves

Remember when the backyard barbie saw the men in the family retreat to the shed for beers and bonding? As the quarter-acre block makes way for townhouse living, sheds are a less common sight in the suburban landscape. However, that need to fix things, share knowledge, to tell bad jokes and simply hang out with other blokes has not abated. In April 2007, the Australian Men's Shed Association was established as a resource for the growing Men's Shed movement. Set up to foster wellbeing in men, the AMSA connects men with their nearest registered shed, and more than 500 Men's Sheds are now registered around the country.

Space-saving tricks

The secret to a highly functional shed or garage is clever storage that maximises every inch of space. It's also good to have a storage system that can accommodate awkwardly shaped objects destined for sheds and garages – from bikes and fishing rods to mowers and rakes. To make the most of any space it pays to think vertically (track-and-hook wall storage) and utilise your ceiling space (overhead storage racks). Look for specialist workshop and garage-shelving systems, like those on offer from Gladiator Garageworks or Garagetek.

Looking for more outdoor inspiration? Check out our Outdoor section.