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You need wood. Cut wood, claim plots, build houses. Put the houses up for sale and then people will automatically migrate to the map.
The very first plot you claim will be the town bunkhouse, which is then automatically built.
Starting as woodcutter is much easier by my experience as you get 30 wood at start and woodcutting knowledge 50+ which makes your chopping much faster.
The pop up does give you the instructions.
1st you build is a bunkhouse that founds the town - for free -no wood or silver needed. Then you will need to build a market (which will be owned by the town) and 2 huts or houses which you have to put up either for sale or for rent. Huts are cheaper.
You need to claim plots first in order to build on them. As long as there are no inhabitants you can claim plots for free.
As Kotsetla you can only claim or own 3 properties. You need 15k to advance to Geneat which allows you to own 50 properties. If you claim 2 estate plots first of all you rise to Geneat class.