I am interested in starting up a home business, for some extra cash so that I can stay with my 2 young children. The only ideas I can up with were, baby-sitting and possibly, starting a baking business. I live in a small town so stuff kind of varies here, lol. All answers welcome, thanks!!!! 
definitely the baking thing!!! it's all about marketing your product! how, where, to who… if you have a great product, it still might fail if you don't know how to market it. find out what you can make-great!-that people will want to pay for. what would YOU want to buy? specialty bake goods for special occasions? home-made orginal something-or-others, to sell in private stores around your town. get your name out there, find an inexpensive way to package, someone who will sell your stuff in their store… you can do it! work hard, use your creativity on a unique product, or maybe a not so unique product, but one that hasn't been offered yet in your small town. delivery bake goods? monthly delivery bakegoods that you can freeze? (like a fruit of the month thing that people give as gifts) there are so many things you can do! do your research, actually talk to people, see if they would be interested in such and such product. go for it!!!! you will be so rewarded for even having tried!!!! best of luck 
How To Start A Successful Business
Coaching And Consulting On Internet Sales Success
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There are a lot home business opportunities out there that are a lot more lucrative than babysitting.
Search for a home based business that has a presence in the "real world", I always say that because there are also home biz ops on-line, but many of them are scams. You want to stray away from that.
On-line however is one the best ways to build your home biz, depending on what you want to do, anywhere from blogging, affiliating marketing, ezines, and marketing business opportunites.
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If you want more info, feel free to contact me. I have many free resources on ideas on how to run a biz.
Set up a craft business on http://www.etsy.com if you have any interest in that.
Pet-sitting.
Set up a daycare center in your own home - it'll be fun for your kids too!
Peruse http://www.craigslist.org for local stay at home opportunities (like letter stuffing, data entry, copyediting).
It all depends on what your strengths are.
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definitely the baking thing!!! it's all about marketing your product! how, where, to who… if you have a great product, it still might fail if you don't know how to market it. find out what you can make-great!-that people will want to pay for. what would YOU want to buy? specialty bake goods for special occasions? home-made orginal something-or-others, to sell in private stores around your town. get your name out there, find an inexpensive way to package, someone who will sell your stuff in their store… you can do it! work hard, use your creativity on a unique product, or maybe a not so unique product, but one that hasn't been offered yet in your small town. delivery bake goods? monthly delivery bakegoods that you can freeze? (like a fruit of the month thing that people give as gifts) there are so many things you can do! do your research, actually talk to people, see if they would be interested in such and such product. go for it!!!! you will be so rewarded for even having tried!!!! best of luck
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Look into loss mitigation - helping those who are currently facing foreclosure due to the housing crunch .. its a blessing to them, and helps financially for you
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You may want to consider a home based business selling a beautiful new line of costume jewelry, the Marcia Miller Collection. It's a new line of very attractive, modern and reasonably priced jewelry and I would be happy to mail you a catalog and consultant information if you have interest. There are numerous ways to market the product including direct mail, the internet and, of course, within your immediate circle of friends, family and business contacts. If you have interest please let me know at the email address provided. jkathes@aol.com
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You could probably find some kind of internet business that you can do at home, although I don't know of any good ones.
Do you like crafts? You could make jewelry or knit scarves. Do you sew? You could make clothes or curtains for people. You could even teach sewing if you want to. Are you musical? People always like to be taught how to play the piano or other instruments.
Maybe grow a garden and sell your produce. It will also save you money at the store to have your own fresh vegetables.
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Take a look at Xedia, help people save money on their electricity bills. http://www.Xpower-Saver.info
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Here is a list of over 100 home business ideas:
http://www.financialfreedomtrail.com/business-opportunities-from-home.html
Since you live in a small town, an Internet home business might be the best way to go.
Here's some ideas for that:
http://www.financialfreedomtrail.com/build-a-home-internet-business.html
References :
http://www.financialfreedomtrail.com