When I was pregnant with #1, I went back to school for medical transcription, which I did from home the next 10 years. Then I was asked to work at the clinic instead, almost 3 years now. I'm currently doing CSA vegetable farming (6th year) and aim to be done at my clinic job and strictly working from home by spring 2013.
Sacrifices: Working out of the house means less family/kid time than I would like, but I try to make the time together count. My job has been part time and incredibly flexible, so I'm still usually home when they are. There's simply so much work to be done that I have to be up late most nights of the year getting things done. It's starting to wear on me.
We've always been frugal and probably would be regardless of our circumstances. We've needed to be frugal in order for me to only need to be part time and home with the kids. We grow/hunt a LOT of our food, so what used to be our 2nd largest bill (after the mortgage) is now pretty cheap.
As for planning, we've tried to build up our bank account as much as possible. The mortgage only has 12 years left on it, my business has built up hugely this year, so those expenses will be out of the way, we've transitioned to buying our own health insurance, and we have 2 new vehicles (old ones were 16 years old), so we feel fairly ready for the change. Really, though, I intend to earn more in vegetable farming than I did in my old job, with way more time to do it, so it's really just a bit more risk in working for myself.
Seven hens farm--I think it's nice when there's not too much judgment in either direction, when women/men give each other credit for doing their best in whatever circumstances they find themselves. I never wanted to work, but when my husband's family farm started hitting really hard time, they needed to drop our health insurance and I needed to work for that. My husband has never earned much, never gotten raises, so it would have been incredibly hard (impossible?) for us to make it on 1 income, at least if we wanted to live on the farm and not in a trailer park 6 miles from the farm.
I think most of us just try to do the best with whatever we have to work with. Working from home was a pretty good option for our family, and I honestly think I'm the person hurt the most by it, by sheer lack of time for myself or sleep, but I wouldn't have it any other way and feel grateful I've always had the flexibilty in my job to put family first.
They will need me to be there for them too! 
