Please help me organise SEO for new business

Hi all, haven't posted here in a while but knew this was the best place to ask a question like this.

I have decided to start a new business using my woodworking skills, I have built a new workshop, filled it with tools and want to turn my hobby into a small but successful money earner.

Over the years I have also had a fair bit of experience with making websites/SEO albeit a few years ago now and so want to combine the two skills.

I have identified two aspects of woodworking that I think I can make money with and I am trying to work out how to organise my web presence for both of them.

The first is a service that I will personally provide to people in my city. This will be to make and install bespoke fitted furniture, things like wardrobes and alcove cupboards. I used to be a carpenter know that the demand for this type of thing where I live is high.

The second part of the business would be to make and sell products online, things like wooden wall art and unusual, quirky bits of furniture. The idea being that when I'm not making cabinets to fit I can make more stuff to sell online so that there is no 'down time' in the workshop.

I'm in two minds as to how to arrange the website/s. On one hand I feel that having two separate sites would be better. Set one up as a super-optimised local services type site focusing on google local and using my address for this (I live right in the heart of the city). Competition is virtually non-existent and I don't think it will take much to get top spot for a keyword such as "built-in cupboards (city name). I would then create a second site selling online products using something like woocommerce/wordpress and lean heavily towards social media marketing using pinterest/instagram etc. This would just be a .co.uk domain with no google local address.

On the other hand I would like to just create one website that offered both the products and services, being predominantly a shop front but also somehow trying to rank for the keywords to sell my local services.

Which way do you think would be more powerful? Even thought the two things are a bit different they are still both very much in the woodworking/furniture niche and might benefit from combing forces. Or they may actually hinder each other by muddying the water so to speak?

I would appreciate your comments!