The hardest part (for us) was figuring out HOW to do homeschooling in our small home. We actually live in a two-bedroom apartment, so our "space" is at a premium. The most helpful tool for me was actually walking around the model-home areas at IKEA and seeing how others maximize their living areas.
I quickly realized that we didn't need to keep our "living room" separate from our "dining room." We moved the dining room table next to one of our living room walls and scooted the couch closer to the TV, which opened up an entire room to be our classroom/playroom. Our girls don't watch much TV during the day anyway--why was I sacrificing all that space for a room we hardly used?
Our open room serves us well. The girls have a big area for creative play and dancing. We store all of our school supplies on the bookshelf and in the drawers--it's SO easy to take down what we need and put it all away at the end of the day.
I tried re-creating a traditional classroom environment when we first started schooling at home, but that doesn't work well for Addie or me. She's only five years old and would much rather work on the floor or at the big table than at a small desk. We get a ton of use out of our clipboards. :)