I have a company along the lines of your first idea. I've had Peanut Butter Kisses in one form or another for 3.5 years now. It's been great, but if you need extra money right away, don't count on an online WAH business like that to supply much if any. Most of the other WAHM with similar businesses I know didn't make any profit in the first years (I was lucky, but my first year it was only like $500). I've heard from numerous places that it takes a good 5 years to see real profits. Right now, my business only pays for the children's clothing and a few small things in our budget.
That said, I love it and won't give it up unless it starts impeding on my family. I work anywhere from 5 hours a week to 20 during the holidays, but I don't count computer time as work because I'm usually nursing at the keyboard. I try to keep things flexible and easy for me so that I can work around my life. We didn't even close down when my son was born 3 weeks ago, but my husband pitched in more. I have made myself delegate things as the business has grown. I stopped sewing diapers two years ago, contracting them out instead. I do still sew the play silks, but only because I love them so much. As much as I love selling items I create, I won't let myself add anymore lines that I have to make. There just isn't time.
Brenda, mama to Abigail, Isabella and Vincent
http://www.peanutbutterkisses.com