Jason Larson (standing, left) finds his company's best projects are $50,000 to $100,000 additions, master suites, and kitchens. To capture this market, he runs prominent advertisements in the phone book and on the radio.

Larson also has some high-tech help. His new lead tracking software generates a lead form for the salesperson, sends a letter to the homeowner with the appointment details, offers direct mail capabilities, and helps him find out which ads are successful.

Larson has also created two niches for his company. Shea Homes, a large new home builder, contracted with Lars Construction to be their preferred remodeler. Larson includes marketing materials in the packages Shea Homes gives home buyers. He also formed a separate company for window replacement once he found that it wasn't cost effective to run window replacement jobs as part of his company's renovation work. His brother is the production manager of that company.