I'm in the process of establishing a small business from home (actually 2--one to pay the bills, and one that I love). There are a lot of "work from home and make millions" scams out there. I wasn't 100% confident I could avoid them so I opened my own bookkeeping/administration business. I have set my office hours, and my family respects them and doesn't ask me household related questions during that time.
On the side, because although I'm really good at bookkeeping and administration it isn't what I love, I'm working on a series of quilt patterns and trying to find ways to start teaching others to quilt. I don't foresee any income from that until I'm more experienced, but I truly love doing it.
Good luck in finding something that works for you and be careful!