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The Elder Scrolls III: Bloodmoon Hints
Setting Up Shop
1 of 6: Carnius' first quest after you choose to work for him is to decide whether to put a smith shop or a trader shop into the colony. He can afford one, but not both.
2 of 6: You could just talk to him about "decision" again and pick one at random, or you could go to the colony and ask all the residents what they think.
3 of 6: They have differing opinions, but the one I found most persuasive was Girith's. He said that it should be a smithy since broken mining equipment could then be fixed right there in the colony instead of having to ship it out for repairs.
4 of 6: Then again, that fact doesn't help you directly, but having a trader might since he can buy a wider variety of things than a smith can (on the other hand, a smith can repair your armor and weapons).
5 of 6: Whatever you choose, tell Carnius and then wait a couple of days until you get a journal entry.
6 of 6: When you do, talk to Carnius about it again to finish the quest.