Most shops use a bullet trap for test firing.. I have a small 10 yard indoor range (underground) which doubles as a hurricane shelter. Only issue is that it is a pain to decontaminate before storms, it takes a whole day, and another half a day to process the water used for cleaning.. If I was a gunsmith I'd probably do a small shipping container with a bullet trap and sound insulation, and a very large multi stage hepa filter on the exhaust.
One thing with a home range is that if possible your bullet impacts should have something above them, that way any glances will hit something, like t