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How to Set Up Your Claude Code Workspace

The folder structure that makes Claude 10x more useful

by Lucia | @reallyusefulai

What's Inside
Section 01

Why Your Workspace Matters

Most people install Claude Code, open a random folder, and start asking it to build things. It works, but it's messy. Files end up everywhere. Claude doesn't remember your preferences. Every new session starts from scratch.

A proper workspace fixes all of that. It gives Claude Code a home. A place where it knows where to put things, what you've already built, and how you like things done.

The difference is like the difference between dumping everything on your desktop vs having a filing system. Both work. One saves you hours.

What you'll have by the end of this guide

A clean workspace folder with a structure that keeps your projects organised, a CLAUDE.md file that tells Claude your preferences so you don't repeat yourself, a context folder for information Claude should always know, and custom commands you can run with a single word. This is exactly how I have mine set up.

Section 02

Create the Base Folder Structure

You can create these folders yourself, or just ask Claude to do it. I'll show you both ways.

Option A: Ask Claude to do it. Open your workspace folder in VS Code, open the terminal, type claude, and paste this:

Create the following folder structure in this workspace: - outputs/ (everything Claude builds goes here) - context/ (background info Claude should know) - reference/ (templates and reusable assets) - plans/ (step-by-step plans before big builds) - scripts/ (automations and tools) Don't put any files in them yet. Just create the empty folders.

Option B: Create them manually. Right-click in the VS Code sidebar and create each folder yourself. Either way, you'll end up with this:

my-workspace/ ├── outputs/ ← everything Claude builds ├── context/ ← background info for Claude ├── reference/ ← templates, brand assets ├── plans/ ← plans before big builds └── scripts/ ← automations and tools
Section 03

The CLAUDE.md File (Your Secret Weapon)

This is the single most useful thing you can add to your workspace. It changes everything.

CLAUDE.md is a file that sits in the root of your workspace. Every time Claude Code starts a new session, it reads this file first. It's like a briefing document. It tells Claude who you are, what this workspace is for, how you like things done, and any rules you want it to follow.

Without it, every session starts from zero. Claude doesn't know your preferences, your style, your projects, or your rules. With it, Claude already knows all of that before you type your first prompt.

How to create it

Open Claude Code in your workspace and paste this prompt:

Create a file called CLAUDE.md in the root of this workspace. This file should contain instructions that you (Claude) will read at the start of every session. I'll tell you what to put in it.

Claude will create the file. Now you just need to fill it in. The next section tells you exactly what to include.

Why it's called CLAUDE.md

Claude Code is specifically programmed to look for a file with this exact name. It reads it automatically at the start of every session. You don't need to tell Claude to read it. It just does. The ".md" means it's a Markdown file, which is just a plain text file with some basic formatting.

Keep it up to date

Your CLAUDE.md should grow with you. When you learn something new about how you like Claude to work, add it. When something changes, update it. I update mine regularly. Think of it as a living document, not a one-time setup.

Section 04

What to Put in CLAUDE.md

Here's a starter template. Copy this into Claude Code and ask it to save it as your CLAUDE.md. Change the bits in [brackets] to match you.

# My Workspace **Who I am:** [Your name, what you do, what you use this workspace for] **What this workspace is for:** [Describe your main projects or goals] --- ## How I Like Things Done - Keep responses short and direct - Explain things in plain English, not technical jargon - Always ask before deleting or overwriting existing files - [Add any other preferences] ## Key Rules 1. [Any specific rules, e.g. "Always use Australian English spelling"] 2. [E.g. "Never use the word 'leverage' in anything you write"] 3. [E.g. "Check the context/ folder before starting any new work"] ## Workspace Structure - outputs/ — everything you build goes here - context/ — read this for background info - reference/ — templates and reusable assets - plans/ — step-by-step plans before big builds - scripts/ — automations and tools
Don't overthink it

Start small. Even three lines are better than nothing. You can always add more later. The point is to stop repeating yourself. If you've told Claude the same thing three times across different sessions, it belongs in CLAUDE.md.

Ask Claude to write it for you

Try this prompt: "Interview me about my preferences, how I work, and what I use this workspace for. Then write a CLAUDE.md file based on my answers." Claude will ask you questions and create a personalised file. Much easier than writing it from scratch.

Section 05

Set Up a Context Folder

CLAUDE.md tells Claude how to behave. The context folder tells Claude what it needs to know about your world.

Think of it like this: if you hired a new assistant, you'd give them a briefing pack. Your goals. Your current projects. Your priorities. The context folder is that briefing pack.

Create a few simple files inside your context/ folder:

context/ ├── about-me.md ← who you are, what you do ├── current-goals.md ← what you're working towards right now └── projects.md ← active projects and their status

You can create these yourself or ask Claude to interview you and build them. Here's a prompt:

I want to set up my context folder. Interview me about: 1. Who I am and what I do 2. My current goals and priorities 3. Any active projects I'm working on Then create separate markdown files for each one in the context/ folder.

Once these files exist, you can tell Claude to read them at the start of a session. Or better yet, add a line to your CLAUDE.md that says:

## Getting Started Before starting work, read the files in context/ to understand my current goals and projects.
What goes in context vs CLAUDE.md?

CLAUDE.md = rules and preferences (how Claude should behave). Things that rarely change.

context/ = information about your world (what Claude should know). Things that change regularly, like your current priorities or active projects.

Keep it current

Stale context is worse than no context. If your goals change, update current-goals.md. If a project wraps up, update projects.md. You can ask Claude to do it: "Update my projects file. The website project is done. Add the new email campaign project."

Section 06

Create Custom Commands

Custom commands let you run a complex prompt with a single word. Instead of typing a long instruction every time, you type /start or /plan and Claude knows exactly what to do.

Commands live in a special folder called .claude/commands/ in your workspace. Each command is a small text file that contains the prompt Claude should run.

Let's create your first one. Ask Claude:

Create a custom command called /start that does the following: 1. Reads CLAUDE.md 2. Reads all files in the context/ folder 3. Gives me a short summary of what it knows about my goals and current projects 4. Asks what I'd like to work on today Save it in .claude/commands/start.md

Now every time you open Claude Code, you just type /start and it loads everything automatically. No need to explain your setup every session.

Here are a few more commands worth creating:

How commands work

Each command is just a markdown file in .claude/commands/. The filename becomes the command name. So start.md becomes /start. You can create as many as you want. I have about five that I use regularly.

Section 07

Let Claude Build the Rest

You don't need to plan everything upfront. Start with the basics and let your workspace grow naturally as you use it.

Here's what typically happens: you start a project. Claude creates files. You realise you need a subfolder. You ask Claude to create it. Over time, your workspace fills up with useful structure that matches exactly how you work.

Things Claude can set up for you when you're ready:

The rule of three

If you've done the same thing three times, it's worth automating. If you've given Claude the same instruction three times, it belongs in CLAUDE.md or a custom command. Let patterns emerge naturally, then systematise them.

Section 08

My Actual Setup (and How Yours Will Grow)

Here's what my workspace looks like after a few months of use. Yours won't look like this on day one. It grew into this over time.

my-workspace/ ├── CLAUDE.md ← rules, preferences, workspace map ├── context/ │ ├── about-me.md ← who I am, what I do │ ├── strategy.md ← current priorities │ └── current-data.md ← live metrics and goals ├── outputs/ │ ├── social/ ← social media content │ └── guides/ ← guides like this one ├── plans/ ← dated plans before big builds ├── reference/ ← templates, brand kit ├── scripts/ ← automations that run on schedule ├── knowledge/ ← notes from articles and videos └── .claude/ └── commands/ ← custom commands (/start, /plan, etc.)

Some of these folders I created on day one. Others, Claude created for me as I needed them. The knowledge/ folder came about when I started saving notes from things I was reading. The scripts/ folder grew when I started automating recurring tasks.

Your workspace will be different because your work is different. The structure should reflect how you think, not how I think. Start with the basics from this guide, then let it evolve.

The most important takeaway

A good workspace does three things: it tells Claude who you are (CLAUDE.md), gives Claude the context it needs (context/), and keeps everything organised so you can find things later (folders). Get those three right and everything else falls into place.

Quick start checklist

1. Create your base folders (outputs, context, reference, plans, scripts)
2. Write a CLAUDE.md (even just three lines)
3. Add at least one file to context/
4. Create a /start command
5. Start building things. Let the rest grow naturally.

Your workspace is ready.

Claude knows who you are, what you're working on, and how you like things done.

Have any questions? Just DM me @reallyusefulai on Instagram or TikTok

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