We've discussed the 'studio' issue in another thread earlier this year - the thing about the word 'studio' is it means different things to different people.

[rollup="Offtopic: Studio"]When you hear 'studio' you think 'movie studio' in scope (large number of employees, dedicated space, good resources). Companies like "Paramount Studios" convey this meaning in the United States.

When I hear the word 'studio' I think 'art studio' in scope (the converted attic of a house, for example). Things like "studio apartment" convey this meaning in the United States.

Wikipedia 'studio':
A) "A studio is an artist's or worker's workroom..." (what comes to my mind)
B) "...or the catchall term for an artist and his or her employees who work within that studio." (what comes to your mind)

A parent's basement could exactly be called a studio or a single-bedroom apartment, in the actual meaning of the word, if part of it is dedicated to the work. Studio has been artistically portrayed for years as a Paris attic lone-painter work area.
These type of 'studios' usually could not pay you. The (romanticised) painters in their attic studios were usually broke and barely making rent (or living there for free). This is exactly the situation most indies are in: Artistic people (or people who think they are artistic) trying to pursue their craft and make a living off of it, without much resources, and without a real business location.

There were also successful artists who had the type of studio you're thinking of: large dedicated workspace not at home, with many assistants/employees (and there are successful indies like this). But that isn't what a studio means. All it means is a room dedicated (completely or in part) for work of a specific type. A person can legitmately have a basement film studio, or an painting loft studio, or a single-room appartment wood-carving studio.

Original thread.
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Your post carries a very relevant point though:
How are you presenting yourselves when recruiting? If someone is small and posting an ad, acknowledge it. They should be open and truthful of their current state, and not pretend to be something they aren't - because it's very easy to tell, and they just come off looking bad, and then I won't want to work with them, and won't want them to work with me.