Getting a craft room organized

I now have a craft room. That means it's time to organize. I look around and can't decide where to start. Perhaps the hundreds of skeins of yarn, boxes of recycled clothing, bags of empty water bottles, or the many other items of unimaginable value (at least to me) would be a good place to begin. Oh my goodness, I have a ton of miscellaneous crafting supplies. Of course they are all mixed together in random boxes and totes. It is going to take some hard work to get this room finished. I wish I could wave a magic wand and everything would have a place. Where are you Fairy Godmother.