You start with 5 people and a few supplies. You must expand quickly into a large town, or else everyone will be slaughtered by invading red pixel-men. There are a lot of jobs to assign your people and plenty of resources to collect. Every game is different - a unique world will be generated each time you play.
This can be rather complex when you start out, so if your people keep dying make sure you have lots of farmers, a couple of warriors, and plenty of water. There is also an in-game help thing. Don't get frustrated and quit, just keep trying.
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V1.1a:
-Whipping workers and giving them the day off now works properly... might have been the source of random deaths
V1.1:
-Towns will no longer be invaded the first two days