I've been working from home for two years now and everything is great. I love the silence and the benefits of working at home, no more commuting to the office, no more traffic, I save a lot of money from gas and daily expenses that I should have incured when working in an office.
However, there is also a lot of distractions while working from home all you have to do is manage them and you will be successful. It is always important to take short breaks when you are distracted. Calm your mind and channel your energy on one task at a time, rather than trying to juggle everything at once.
Prioritize your time by deciding what needs to be done first. If you need to schedule an important call, do it when the kids are playing outside or napping. If you're working amid major noise and chaos, however you define it, use that time to accomplish projects that require less of your absolute attention.