The power of small teams by Avi Muchnick
Choose people that can wear multiple hats. Can your designer code? Can your programmer manage a community? Can your marketing guru fund raise? Can one guy do it all?
All documentation should be available via a central location. A wiki can work really well for this purpose. Good documentation lessens the loss from communication failures.
Arrange your workspace in common areas. Segregating your team in different offices is a recipe for lost communication data and with it, a need for additional people. You’d be surprised at how many roles can be shared by multiple people, so long as they have the ability to communicate instantly and unimpeded with each other. Put people between walls, and those shared tasks will need to be managed by additional team members.
Amazon and Google do a lot with small teams and I think they have it right. I have worked on small IT teams for several years now and find it great. Combine with agile management methods small teams allow for great focus (you are naturally guided toward appropriate project sizes instead of huge monster projects), great results and joy in work. I have no desire to work in large teams.