What's really key is mindset. To work alone, you've got to fire yourself up, set your own goals, follow your own plan, and be thorough, staying focused even though no one is cracking the whip. Once you've done the psychological work, it's time for due diligence on the technicalities. Don't assume you can write everything off as tax deductible. See whether your locality has zoning or licensing regulations or restricts home production of some products.
Explosives are obviously out, but in some places clothing and toys are, too.
And please write to let me know how it's going. Jill Hamburg Coplan has covered work, family, business, and finance for the past decade as a writer and editor for newspapers, magazines, and wire services.