The first step to developing a software project is to make sure everyone in your team agrees on what you will be building. It's easy to get in trouble later on if you planned a larger project than you are capable of delivering, or if your team mates understand the project differently from on another.
This is the time for brainstorming, crazy ideas, silly questions and open discussion of the project. All ideas are welcome! You should be less concerned about finding the right answer, and more concerned about finding a shared answer.
By the end of this step your group's repository should have:
Write a README for your project. If the template repository already has some setup information, you can write about your project before this.
It does not need to be perfect yet but should give anyone arriving at your repository a clear idea of what is going on. You can always open issues later on to update the README during Development.
Set your repository description so that people can get an idea what your project is about directly from you GitHub profile or from the web.