I didn't hear anyone bring up the issue of zoning. I know the town I live in, would not allow a business at someones home but they will allow a hobby shop. I personly like working in the backyard but there are some restictions. I don't have room for the big tools. (power hammer, mill...ect) If you are looking at going into business for yourself I would go with the bigger shop. If your a part time smith like me out back is fine!