Keep equipment at a safe distance from the entrance of the room
Having the equipment close to the doorway of the room can result in serious injury to a person who enters the room without being aware of what is lying where. It is very much possible for someone to trip over a dumbbell or bumping their knee in some machine. In order to minimize the chances of accidents, it is best to set all of your equipment at a good distance from the doorway. A recommended distance is six-to-eight feet, though you can increase the distance even more if your room is large enough.
Group weight machines and machines by muscle group
Different weights machines and equipments target different muscle groups. Some help to develop triceps, others put pressure on thighs or calves, while some weight machines and equipment help to build shoulders and chest. Set the machines and equipments for a specific muscle group close to each other, hardly six-to-seven feet from each other. This is particularly useful if you plan on circuit training, which involves switching from one equipment to another without taking any break.
Dedicate the least amount of room to treadmills and aerobic machines
Treadmill and aerobic machines require the least amount of space in a room because of their relatively narrow size. They can also be placed close to each other, unlike the other equipment. Use this to your advantage by setting them up where the least amount of room is available. It is recommended, however, to set them up at a place where ventilation or fresh air can flow in.
Dedicate maximum space to free weights and barbells
Try to dedicate as much space to free weights and barbells as possible due to both safety and operation reasons. It is not uncommon to lose control of a barbell, especially when a person gets tired and is trying to rep to failure. This puts anyone standing really close to him in danger. You want to keep people in your weight room safe and therefore the best way to do this is by dedicating substantial space to the equipment. Long bars of barbells also require significant space for operational purposes.