Another idea for a homebased internet business is to sell hard goods.
Physical products.
The problem with physical products is you may have to stock the product (unless you can have it dropped shipped for you).
On the other hand, if you already have a retail outlet you can expand your market to online.
Hobby products, speciality products that may only be available in your area (artefacts) or if you are creative artist ...sell your art online.
Just remember that to build a solid business online is more then just throwing up a website...you want one that will bring traffic (targeted traffic) so you can actually make the sale.