[rudimental]

It sounds complex. At any moment, you have 3 options. You can accept it, change it, or leave it.

Do you have paying customers? If so, that's not a bad start. Do your potential customers pay to solve the problem you are trying to solve? That's also not a bad start.

Have you considered hiring a consultant to help solve the problem, or to be the bearer of bad news (not having a clear understanding of your customer or the market)? I've helped people / companies figure out their target customer and what would solve their problems. Feel free to reach me at helpthingchat a.t gmail dot com if you'd like.

As to leaving, you can find the best way to frame it, and then do it. If they're really your friends, they will accept it. If not, who cares what they think?