Home-based businesses have become very popular these days, thanks to the rising cost of setting up full-time businesses! The added advantage of any home-based business is that it can be run from the comfort of one's home. Working from home also implies that whatever one earns is a bonus. Home-based businesses are preferred options for urban, educated housewives as well as retirees who are looking for fresh avenues from where they can keep on earning money.
Most service based businesses and some manufacturing businesses can be run from home. It is possible that maufacturing which pollutes by way of noise or exhaust or dust etc., may not be legally allowed in the residential zone in which you live. It is necessary for you to evaluate as to whether your home would be suitable for the kind of business you have chosen.
Some links which may be useful for ideas related to home based businesses are :