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You will need to check on buildings codes, some places will let you convert a shed, some don’t, some say it needs to have ‘x’ amount of green space on your property.
I agree. You need to check building codes.
You will need plumbing, electrical, and septic for your shed turned into a bedroom/bathroom. Once you accomplish getting those things in place the rest would just be fun decorating!
https://www.thetinyhouse.net/tiny-house-shed/?utm_sq=fyp9gjllqq
Check local building codes first. Many municipalities have available on line. Unless you have prior construction experience, this is not a DIY project. Here is how to hire a contractor.
https://www.consumer.ftc.gov/articles/0242-hiring-contractor
Requires permits, utilities - water, gas, electric and sewer need to be installed. Fun project, but a big job.