Having worked in and managed a small software development business and also as an IT manager for a large company I believe I can give you some advice.

Paul was right in making sure you are cognizant of you company’s business plan and projected activities. However, in setting up a development group you can begin with some very basic items. Answer the following questions for yourself.

1. Based on the product being developed what tools, hardware and software, are necessary for the task?

2. Is your current staff proficient in using these tools? If not, is training available or do you need some different or addtional people?

3. Have you evaluated the skill sets of your employees so that you can assign tasks that are within thier capabilities.

4. If assigning team leaders, have you confirmed that these people can lead without bossing other around?

5. Have you planned on a good QA path both during and after software has been written? (Note, it is important here to get those that ask for the design or production to be involved in the QA process.)

6. In the post production world, have you setup good lines of communication with the people going to support the products?

If make sure your plans include answers to above questions you are on your way to a successful development team.

Good luck,
Zack