Is it low self-esteem or over-hype?

I am not sure if I have talked about her much but I have a wonderful "step"-mom I call Deeder. (She is my ex-stepdad's new wife and I love them both dearly and are still my family no matter what.) She is amazing! Now that I have introduced y'all let me tell you what is going on. She has so much faith in me, it is insane! Her mother was the craftiest person I have ever met, her house was beautifully decorated, it was different each time I saw it, she canned the best jellies and salsa you would have ever tasted, and she did it all without complaint. I think that Deeder is placing that on me slightly. She knows I love crafting and canning, but she wants me to start my own little side business. She said I can decorate peoples house's or business' for the holidays, also make random crafts to sell, plus charge people for the mending on their clothes. 
Now I just don't have that much faith in myself to do that. When I was first out of high school I made cakes for different occasions like I made my friends wedding shower and wedding cakes, I made a baby shower cake for one of my teachers, I made birthday cakes for friends and family and I was always super critical and I low balled the prices or I called it a gift (despite being fought a few time on that). I am not good at setting prices for my crafts/cakes and they never turn out like I imagined them to be. This was the first time I ever user fondant or tried my hand at piping (free of charge it was a gift)This cake was from '07 and was for a history buff who was into war and guns.(free of charge it was a gift)This was the wedding shower cake. I was given like a 24 hour notice so it wasn't the best. (free of charge was a gift)
I would LOVE to stay at home and craft all day and make money doing it, but I just don't think I am good enough to make a living doing it. I also don't have faith that people would feel satisfied with the outcome, and I would feel bad. Heaven forbid someone want to haggle with me! I would go broke. 
So what do you think? Is this a bad on me, low self-esteem OR is it that Deeder over-hypes my abilities?