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Level up taking out thugs and taking over thug-based businesses. The up front costs can be expensive, but they are easier to handle than gangs. Once you get good booze production, renovate small thug operations into small speakeasies. Having lots of small bars will cushion you against losing one or two or a few of them. You don't really need to invest in them until they stop being competitive in the marketplace.
Find a neighbourhood that has many thug businesses, and set up a safe house there. That way, you won't really be bothering gangs and you can grow at your own pace. Once you have a good steady income, you can think about adding to your henchmen and improving properties, or going to war against the small gangs.
My first playthrough, I feel like rival gangs are moving at lightning speed and taking my opportunities, while I'm just trying to stop hemorrhaging money. Boosting my alcohol quality is highest priority, and I've got a slim profit after upgrading, but my cash pool hovers around 1000 to 3000, which barely gives me enough to seize a new racket or do another upgrade. I'm basically looking for street thugs to whack in the meantime.
I play frank ragan and i skip the tutorial so I don't have any crew at the start. This seems to be tough so I bought 3 additional crew but yeah this seems to drink up much money.
I tried to get more and more speak easys with 1 brewery to fit the demand but as you describe I try to bump up alc quality. This is a decent cash sink so I end up with very less money and yeah even on easy the ai gangs are expanding quickly and flodding my starting quarter.
I wish there was an option so that each gang starts within its own neighborhood. Because many times i start with 2-3 other gangs in same spot which is screaming for war way too soon. :(
Two words: Do Missions.
3 gangsters to take over medium tier
5 gangsters to take over large tier
7 gangsters to take over safehouses