My early game is tournaments, practice fights, and high paying quests. I use that money to recruit the first of my companions from various cities. Once I have those slots filled, I recruit my soldiers based on what kind of mercenary company I want to run. I usually have a focus, like heavy cavalry, infantry, skirmishers, or even an archer company. I always put all my companions on horses. I send the recruits into the meat grinder against looters and bandits to level them, with my character and companions acting as a small light cavalry flanking force to ensure victory. Meanwhile I take more quests and win tournaments for coin to better outfit my captains and hire replacement recruits.
Once I feel I've properly outfitted my captains from the spoils of war, I start a merc contract with whatever faction I feel like supporting. Then I start turning in looters and bandits for influence which converts to decent coin over time.
I don't think I ever spend more than 20 minutes as a Tier 0 clan, and Tier 2 hits pretty quick once you've been merc'ing for a bit. Then it's off to find a spouse and make babies for a late game I'll never see because I'm in a state of perpetually starting over due to new inspiration for characters and companies.