If you have small children, working from home gives you a lot of flexibility in the way of being there for your kids. Work early in the morning and late at night when your children are asleep. If they attend a preschool of some sort, there is a niche of time during the day during which you can also get some work done. When your children need you, you can and will be there for them.
If you find that you need more time during the day, hire a babysitter to keep an eye on your kids. Don't try to work and watch your kids at the same time. In attempting to do so, both your work and your children will suffer. Work only when you can completely focus on work, and watch your children only when you can focus entirely on them. By following this simple rule, both your work and your children will be better off in the long run.