How to perform subnetting using VLSM
1. Re-order the subnets according to number of host addresses needed, in descending order
2. For each subnet, calculate the number bits needed in the host portion, n, such that (2n-2) ≥ number of host addresses needed
3. Allocate a block of 2n IP addresses to that subnet. Reserve the first IP address as the Network ID, and last IP address as the Broadcast Address. The rest are valid host addresses
4. Repeat for each subnet, with an IP address block starting immediately after the Broadcast Address of the previous subnet