This is a dream for many women and it sounds so wonderful. The reality is is you are not an organized, self-motivated person, then you will not succeed. It is much easier to go into a work environment and do a job. At home, you will have many distractions, especially taking care of young children. You will have to have some type of childcare, unless your kids nap for five or more hours a day.
Please, Please, Please don't start selling something. Practically every SAHM I know is selling something. It has really put a strain on our friendships. I don't appreciate being constantly asked to go to parties and buy products that I don't need. Do you really want to try to make money off your friends? There are several of these women that I can no longer be around, they are so pushy. If I see them coming, I run the other way.
The best way to work at home, is to telecommute or freelance in a field in which you already have experience. I used to be a freelance artist, before my kids were born. I was not able to keep it up when my kids were little. Good luck and I hope you can find something that will work for you.