Agree with Suzie.
I'm also home based. My flat is very small, but my working area is separated with one little wall. My home always has to be tidy, though I have a 4 year old daughter and when people come in, there are her books and toys they see, but not in the working area and everything is in immaculate order. My daughter is in kindergarten till 8 to 4, and after that she is with me or with my aunt, if there's a new client coming or if I have intimate waxing or something that needs more privacy.
Also, before my clients come, I always first feed her, play, talk with her or see to any other needs she might have, so when I work, she plays for herself or watches cartoons and she knows that she must never bother me or the clients during the work unless it's something serious. People usually don't mind having the kid around, but you have to set some rules, because you cannot interrupt your service because your kid wants another toy or something. May sound harsh, but work is work.
And as far as clients preferences: there are clients who would never come to me because I'm home based and they think I'm not professional enough (despite my certificates and the fact that I pay taxes) because I'm not "in the proper salon".
Others, which greatly outnumber the first ones, really enjoy being in a cozy, home atmosphere, all of my attention is theirs, they relax and still get the service professionally done. Of course, the working area is strictly working area, and there's no personal or other items not related to work.
It takes a lot of time and effort to put all of it to work, but as long as you work and look professionally, it should be ok.