agile methodology will be best for this kind of organization. Eleminate the document preparation process at the starting the project. Since you have a small team and developers are few, you should ask the developer to estimate a module or a project.so the presure will be on the developer to complete the task what they estimated. after all it is on the management and leadership how to get work dome form the developers. no need for the testers if u have a small project to work. Ask developer to ensure for the quality what they are delivering. see there is not any limitation of money in s/w industry so don't get worried about the money that you are paying for the resources but take care that your resources give u the best work. Thanks