HELP deciding please.

I've got two places in my garden shed in mind for a small grow op and my first indoor grow.
1st up is the loft, 3 feet floor to plates at peak, 7 feet deep and 10 feet where the roof meets the floor so what maybe 7 feet usable width. Pic from my new Iphone so not the greatest, but you get the idea.

Idea # 2 is to build a 4 foot by 4 foot by 7 foot tall closet in the corner of the shed. Ideally I'd like to have a couple of heavy yielders to help finance better equipment as my op improves with age and a couple of ?? for some high quality smoke for myself and friends. (possiblein the given space?)
Going to throw up some insulation, thinking foam board behind Refelctex, florescent lighting and ,maybe a low cost HPS to get me going. Will have to see what is needed for heating once the insulation is done.
So what say you growers.??

sounds good to me. how tall is the loft? if 3 feet is it, ou can do that with a SOG but you will need probably 3-4 1000 watters to get some good weight out of a space that short. building the closet sounds like a better idea. id make it 5x5 IMO. thats 9 more sq feet, and atleast 4 more plants.

Thanks for the reply. Decided to go with a 4'6" X 5' X 7' tall closet in the corner of my shed. As luck would have it I picked up a slightly used 600 W HSP for cheap and a new 4' X4 tube T5 HO fixture for free, so I'm well on my way. Hopefully I'll have time this weekend to frame in the closet and get it insulated and wired.