A winning strategy.

You've heard from reliable sources: Stay away from saturated markets. What these gurus probably failed to mention is that you can penetrate most markets if you know how to spot a niche.

No business has been more inundated than the $27.9 billion active sportswear market, where black representation is less than 3%. T-shirts, caps and other apparel imprinted with sports team logos and cartoon characters contribute roughly 26%, with 1993 sales around $7.31 billion, according to the National Sporting Goods Association (NSGA) in Mt. Prospect, Ill.

But many licensing hopefuls are now skipping sports altogether. And no wonder, with major league baseball rejecting 80% of the hundreds of applications it receives. But not Torrel Harris, founder and president of Unique Sports Generation, which markets reversible warm-up suits stamped with National Basketball Association team logos.

In 1991, Harris lured the NBA by demonstrating how the consumer actually got four suits in one. Although the licensing agency took to the idea, it didn't grant Harris a license until 1994. Unable to secure a bank loan, Harris relied on $500,000 in personal savings to fund the business during those early years. "The NBA has a very long screening process," says a persistent Harris. "They want to make sure you're in it to win."

Even if you're able to get a license, buying into the major leagues costs. Depending on which league you're dealing with, just to get into the ball game will cost you $50,000 or more," says Thomas B. Doyle, the NSGA's director of research and information. "That's the initial fee you'll have to pay just if they like your idea. After that you're talking about royalty payments, which can be as much as 10% to 15% of your revenues."

More than how well you pitch your idea, licensing agencies are looking for companies that have solid, resourceful management teams, sound financing and high-quality merchandise that's worthy of the licensor's primary product - its name. It's also critical that you have a business plan that has short- and long-term objectives.

In 1991, Unique Sports Generation's reversible warm-ups entered their first store, Rochester Big and Tall. Sales for the $175 priced suits reached $50,000 that year. Soon after, Big and Tall department stores across the nation began to carry Harris' product. This month, he says, expect to find the suits in Foot Locker, Mercantile, Nordstrom and Paragon. By 1993, sales tripled to a $150,000; 1994 sales are expected to hit $1 million.

Don't expect multimillion dollar contracts at first, say experts. Accept the little accounts because buyers insist on testing the products. "Newer products are competing against the top brand names. [New licensees] have to show me they can meet consumer demand, are priced competitively and will get great exposure, before I buy," says Kelley Purdy, a licensed apparel buyer at a Foot Locker outlet in New York City.

Whatever product you opt to push, make sure you seek out some free publicity. You can buy allegiance, but you can't make [endorsers] wear it," adds Purdy. "If they do, then I know the product will do well on my racks."

Last season, the world watched the New York Knicks and Houston Rockets battle for the championship. When it was all over, heartbroken Knicks fans had their sights on a stylish Charles Oakley and Derrek Harper. The New York players were wearing gear by Unique Sports Generation. No wonder Harris is anticipating a very good year.