I've been working from home since 2008. Here's the thing, though. I've found that in order to maximize your production level, you need to have a home office where you can actually "go to work."
If you do not create an environment for yourself that promotes work, you may find yourself slacking off, or procrastinating.
You should also let your family members know that when you are in your office, you are "at work," so they should try not to disturb you and treat it as if you were at an actual business.
When I first started my own business, I did not have a home office set up, and I found that it hindered my success. Once I was able to rent a bigger place and designate an entire room as my office, I was able to set my own hours to be "at work," and it made it so much better. I was able to enjoy being home while getting lots of work done at the same time!