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Here's a synopsis of a good article I read about the
Pros and Cons of starting a home-based business:

Pro: You are your own boss.

Con: You are also your own accountant, marketer, tech support, customer service representative, and custodian.

Pro: Balanced career and family life.

Con: The scale can easily tip toward home responsibilities.

Pro: Increased tax benefit and write-offs.

Con: No health insurance benefits unless you pay out of pocket.

Con: You may miss the interaction with coworkers.

Pro: Increased income potential.

Con: No set income.

Starting a home-based business is not the right choice for everyone. Carefully weigh your options before you decide to take on this challenge.

http://www.moneymanagement.org/Budgeting-Tools/Credit-Articles/Earn-More/Considering-a-home-based-business-pros-and-cons.aspx

Considering a home based business pros and cons - Money Management Considering a home based business pros and cons