Starting a home-based business can be an ideal way to earn money, set your own hours and work at a job you enjoy. You can set up many types of businesses without leaving the house. Draw on your talents, skills, education and interests to find the right one.

Daycare Center

Open a daycare center. A home-based daycare center can allow you to watch your own children and care for other people's babies at the same time. To start a daycare center, first carefully investigate the rules and regulations governing day care centers in your community. You may need to make changes to your home to ensure the house is safe -- for example, install baby gates and put away dangerous items that could be ingested accidentally. Make sure you have supplies such as baby toys, baby food and equipment to sterilize formula. You can charge by the day, week or month. Running a daycare may require long hours to match your clients' working hours.

Teacher

Start a teaching or tutoring service. If you studied piano in college, understand advanced math or aced the verbal portion of the SAT, consider teaching others to do the same. A teaching license is helpful but not required. Advertise your credentials in local newspapers. Set aside a room to give lessons. The room should be quiet and free from distractions. A student should have his or her own workspace where you can see his or her progress as you give lessons. Teachers and tutors can charge upwards of $20 an hour depending on their area of expertise and skill level.

Internet Based Selling Business

Setting up an Internet based business out of your home can be an excellent way to earn money and tap into your selling or crafting skills. If you have a vast knowledge of antiques or collectibles tap into that knowledge to sell on eBay. Hunt for items at garage sales and sell them on-line. You will need a good digital camera to take pictures and an understanding of how to write advertising copy. If you can create intricate one of kind quilts or exquisite flower girl dresses sell your handiwork on Etsy. Etsy is an on-line selling sites specifically designed to bring together craft sellers and buyers. Sellers get their own store and can work with clients directly. Buyers can browse items by category and commission specially designed pieces.