Capture as many sectors as possible every day, especially in the beginning.
3-4 sectors a day is possible.
Be smart when it comes to taking sectors. The water works with you and against you.
Don't have an overkill in guards. 8 per sector directly into contact with enemy sectors is enough. Beyond that 2-4 backup per sector with 8.
Start with a cheap team.
Mercs to start with (from memory):
Ivan, Fidel, Speck. These 3 are must haves IMO. Speck is a mule for day 1 and repair guy for the rest of time. He never sees any combat with me but you can't get a better repair guy for that money.
Jimmy, Hitman, Ice, Wolf are optional ones. Some have med skill for first aid. You could add a cheap doctor to treat a badly injured merc during daytime when the others are fighting.