The key is to determine what your interests are, what you want to do, what is suitable for your lifestyle and your overall goals, and what can fit with your resources.

Here are some articles that provide tips on how you can choose the best business for you:

How Do You Choose a Home Business? http://www.powerhomebiz.com/052006/homebusiness.htm
No Clue as to What Business to Start? http://www.powerhomebiz.com/vol25/noclue.htm
Tips on Choosing Your Own Business http://www.powerhomebiz.com/vol10/choosing.htm
Hard Knock’s Guide to Selecting a Business http://www.powerhomebiz.com/vol6/bizselection.htm
7 Methods in Choosing a Business http://www.powerhomebiz.com/vol72/methods.htm
Evaluating Your Business Ideas and Products http://www.powerhomebiz.com/vol13/evaluateideas.htm

Dan Ramsey in his book "101 Best Home Businesses" has a chapter on how to find YOUR best home business. He suggests these 10 steps:

1. List 5 things you do best
2. List how others would benefit from what you do best
3. Find out how to give people what they want
4. Learn the value of your services to others
5. Find out who else offers similar services
6. Learn from the successes of others
7. Learn from the failures of others
8. Plan your own success
9. Make low cost mistakes
10. Enjoy what you do and how you do it

He then made suggestions on the best home businesses according to type. Here are a few of them:

Best Businesses Using Craft or Physical Skills
- antique restoration
- auto detail service
- carpet cleaning business
- errand/delivery service
- housecleaning business

Best Service Businesses
- bed and breakfast operator
- caregiver
- catering service
- senior day care center
- tutoring service

Best Professional Businesses
- desktop publisher
- magazine writer
- import/export service
- income tax preparation service
- event planner

Some other home business ideas:

Top 10 Home Businesses with Rapid Break-Even Time http://www.powerhomebiz.com/vol33/breakeven.htm
10 Profitable “Go-Out" Home Businesses http://www.powerhomebiz.com/vol31/goout.htm
Low Cost Startup Businesses http://www.entrepreneur.com/lowcostbusinesses/0,6617,,00.html
6 Hottest Businesses on the Web http://www.powerhomebiz.com/052006/web.htm

You can also check out the following books:

The Stay-at-Home Mom’s Guide to Making Money from Home, Revised 2nd Edition : Choosing the Business That’s Right for You Using the Skills and Interests You Already Have (Stay-at-Home Mom’s Guide) by Liz Folger
101 Best Home-Based Businesses for Women, 3rd Edition : Everything You Need to Know About Getting Started on the Road to Success (For Fun & Profit) by Priscilla Huff
Turn Your Talents into Profits: 100+ Terrific Ideas for Starting Your Own Home-Based Microbusiness
The Best Home Businesses for the 21st Century
121 Internet Businesses You Can Start from Home
The Best Internet Businesses You Can Start
101 Ways to Make Money at Home

To give you ideas on what exactly do you need to start your own business, here are ten things you need to know before launching your own business “10 Things You Need to Know When Starting Your Own Home Business” http://www.powerhomebiz.com/052006/startingbiz.htm .
References :

By researching the prospect of starting your own business — what it entails, what you need to know, helpful hints, etc — you’ll feel better prepared to take that plunge.

I found some book titles that are relevant to your specific question:

* 101 Internet Businesses You Can Start from Home by Susan Sweeney
* The Best Home Businesses for the 21st Century by Paul Edwards
* Selling Online: How to Become a Successful E-Commerce Merchant by Jim Carroll
* I Could Do Anything If I Only Knew What It Was: How to Discover What You Really Want and How to Get It by Barbara Sher
* I Don’t Know What I Want, But I Know It’s Not This: A Step-by-Step Guide to Finding Gratifying Work by Julie Jansen
* The Best Internet Businesses You Can Start by Marian Betancourt
* The Shoestring Entrepreneur’s Guide to Internet Start-Ups by Robert Spiegel
* Making a Living Without a Job : Winning Ways For Creating Work That You Love by Barbara Winter

I also posted some article links in the source box.

Hope that helps! I wish you much success & happiness in all your ventures!
References :
http://ezinearticles.com/?5-New-And-Lesser-Known-Online-Business-Ideas&id=123130 – 5 New and Lesser Known Online Business Ideas by Rojo Sunsen
http://www.ezinearticles.com/?How-To-Find-Hot-Online-Business-Ideas&id=12883 – How to Find Hot Online Business Ideas by Jeff Smith
http://www.ezinearticles.com/?Types-of-Internet-Opportunity-(Whats-It-All-About?)&id=124672 – Types of Internet Opportunity (What’s It All About?) by Yigit Djevdet
http://ezinearticles.com/?Guide-to-Internet-Business—Concept-and-Opportunities&id=14770 – Guide to Internet Business – Concept & Opportunities by Steven O. Ng
http://ezinearticles.com/?Top-7-Home-Business-ideas&id=179312 – Top 7 Home Business Ideas by Jennifer Carter
http://ezinearticles.com/?Best-Home-Business-Ideas—How-to-Choose-One&id=165293 – Best Home Business Ideas – How to Choose One by Frederic Madore
http://ezinearticles.com/?Home-Based-Business-Ideas&id=131809 – Home Based Business Ideas by Kent Pinkerton
http://ezinearticles.com/?How-to-Start-a-Low-Cost-Home-Based-Business&id=41220 – How to Start a Low Cost Home Based Business by Randy Wilson