That depends entirely on you! What are you interested in doing and what kind of expertise do you have? There are a number of pre-packaged home-based business options. You are essentially an "intrapreneur" running a business for a larger business/company. You get paid based on your sales and a portion is paid back to the company. However, if you have an idea in mind for your own business then you can go that route instead. It's hard to say what kind of business is best because it should be something you're passionate about. Spend some time researching areas of interest, consult with industry associations and do the necessary market research to determine if you have a workable business concept. Utilizing the internet is a great way to build a scalable company while maintaining freedom at home. You may also want to seek the help and advice of other entrepreneurs and/or mentors to get some ideas and motivation. Join your local Chamber of Commerce or other associations and start talking to people.
My best advice would be to start small. Sell a product or service from your home and grow your business naturally. Starting small allows you to find a healthy balance between earning profits and spending time at home with your kids.