A couple thoughts:

I agree that the room seems a bit on the small side, and that black-painted walls (matte, not glossy) will make your life easier if you're trying to control the lighting. If you want to bounce light, you can always add a reflector or whatever later.

You'll definitely want to have one of those window-shade contraptions that lets you pull down backdrops of different colors. You may want to spring the extra bucks for longer ones that can also spread out on the floor, allowing you to shoot full-size floor-standing things from a variety of angles.

There all kinds of fancy lighting "systems" you can get into, some wired, some wireless. Some built around standard camera flashes and others built around dedicated strobes with external power supplies. Some add "modeling lights", which are low power bulbs that let you make sure you're getting your shadows how you want them when you adjust the lighting. Then you get the high-power flash only when you pull the trigger.

To some extent, your best bet is probably to arrange to tour the photo studios of several local photographers and ask them to demonstrate their stuff. Ultimately, once you've seen and dorked with the equipment directly, you'll have a much better idea of what you want and you'll be more prepared to justify the cost.