There are several different ways you can renovate a basement. While the end result will be different depending on this method you choose, the beginning stages are always the same. The first thing you will want to do when renovating your basement is to put up dry wall or paneling and some type of flooring. If you currently have a concrete floor in your basement, you will want to install a linoleum floor or some carpeting. This will give your basement a nice warm feeling and start to turn it into a useable room. After you put up new walls and flooring, you will want to improve the lighting in your basement so you can see when you are down there. Most basements are dark, damp places. To counteract the fact that there are no outside facing windows in a basement large enough to let in a sizeable amount of sunlight, you will want to install bright lights or floor lamps in your basement. Improving the lighting will entice you and your guests to spend more time in your basement as it will feel like another room in your house. Once you have improved the walls, floors, and lights in your basement, you will need to decide if you are going to put down any entertainment pieces such as a big screen television or pool table. Adding something to your basement that will make you want to spend more time down there will increase the effectiveness of your basement renovation.