Finally, and at the third time of trying, I'm starting to get in to this game.
I'm still not sure that it's vibe is fully resonating with me, but I'm starting to feel its charm.
What was helpful was watching the first part of a four hour duration 'zero-to-city play-through' on youtube. This rather suggests that (for this player) a bit more hand-holding would have been helpful at the start.
However, as it stands, an early access game from a solo developer, it is a very impressive piece of work, and it seems for now to have broken the spell that Valhiem has/had over me (where I didn't enjoy the Mistlands update that much and am finding Ashlands similarly tiresome).
Need any advice, just give me a shout. I've played it extensively and know how almost everything works.
The main issue you can run into later with big towns is marketplace distribution. Its a bit wonky with large cities. Also once you get into a population in the thousands the game can start to break down, so don't go crazy with huge cities.
Also, turn off raiders until you get the hang of things and if you have the off-screen baron enabled, set him to reactive, not aggressive.
Bandits are a pro and a con. They will steal your stuff from time to time, but they are a great source of early income as well when you take out their camps.
Regarding starting resources, anything can work but i do recommend restarting if you get a rich stone deposit, as you don't need that much stone and it can't be made an everlasting deposit like iron and clay can be.
Deer/Hunting Grounds currently have an issue in that the deer will wander far from there. You can reduce the chance of this by pausing at the start of the game and putting a huge field over the red circle where the hunting grounds are. They can still wander, but less likely.