Matt Gemmell writes an excellent piece on working from home. You can tell he’s been doing it for a while, and I love his emphasis on creating a routine. If you don’t have a routine when you work from home, you’ll never get anything done.
Personally, the thing I would’ve dedicated a little more time to is the work-life balance. Working from home, and in Matt’s case, owning your own business should afford you the luxury of working less, not slaving away more. But, to each their own.