Stop separating the outside of your home from the inside of your house, try to think of your home as all one place. Look at your outdoor area, look at your yard and take inventory products you have naturally in this space. What has mother nature already provided for you? Hopefully you will have some kind of natural elements that can be the focal point of the new outdoor living room area such as a large tree, a hedgerow, a fantastic slope, or a beautiful view. There could possibly be other qualities you may start with, such as a lovely angle of morning sun, maybe a nice brick wall in one side creating a microclimate, or even an interesting urban view of some kind, though in urban locations, your yard could be a barren rectangle, with nothing in it however some weeds and dirt.