Since calm surroundings are so critical to a newborn's development, you should first give some serious thought to the location of the baby's room: Will it be on the same floor as your bedroom? If not, how will you monitor the room — with an audio or video monitor? Will the baby's room be near a busy, noisy street, or will it be facing a backyard where there is nothing but the sound of crickets?

Planning the best location for your baby's room is the starting point in designing the nursery. Once you have decided on the space, then you can begin filling the room with plush toys and cool designs. But there's one thing to remember: Baby may not actually sleep in his or her nursery for a few months. The American Academy of Pediatrics highly recommends that newborns and young infants sleep in their parents' room, at least until baby is older or can sleep through the night.