If you make the right choices you will be able to compete sooner than you think.
When I began, there were 3 well-established teams in league 1.
With a little patience, I was ready to challenge them after 2 seasons.
A quick summary for a good start:
1- Concentrate on expanding arena and increasing attendance.
2- Invest in the draft. You may get your 1st choices because computers select at random.
3- Train at least 3 players. If you get some good young players at the beginning, train them.
4- If not, try to purchase 1 or 2 cheap players. No need for high potential. Perennial allstar is good enough to start.
5- Put money aside to buy some key players when you really need them in 1 or 2 seasons.
CaptainTeemo, if you have anything to add, please do. ;)