One shouldn't spend months in basement coding, instead go and execute something simple, release, get metrics and feedback and learn how to iterate with an aim at product fit. With experience and good examples of launched products, that would get you an amazing team and good track record.
Browse through http://yclist.com/ to see if any companies were small-market. Version 1 doesn't have to cater to a giant market, but you should have a plan to get there eventually (and be able to concisely express your plan).