I agree with Guillaume: If you want to build a department from scratch, you need to focus. You need to build your team, have everybody grow into their new responsibilities, get to know each other etc. Trying to go into too many directions at once is the direction towards failure.
So, identify the technology you want to develop in. Since the primary goal in your example is in-house development, the in-house requirements will determine your decision. Build your team with that primary goal in mind.
For in-house development, you need at least two people who already know the company and its processes. (Two because one will definitely be ill or on holidays when the first major crisis hits you). On the other hand you need some outsiders, who are not entrenched by the "we have always done it like this" mindset, who can think out of the box. Those should also be at least two people, for the reason stated above. Your job as the team leader is to balance those two groups and integrate them into a team.
For future growth, always think in terms of organic growth.
Do not increase the team size by 200 %, hire one new guy here and another guy (or gal) there. Slowly build your team.
When you take on a new project, always think of expanding your teams expertise. Try something new with every project. That can be a new source repository, an automated daily build process, a new system to write specifications or documentation, or even a different technology (for example Java when you usually develop in .Net, Delphi or C++). Just make certain you never try to make a big leap in an important project. (I once worked for a company who decided to switch from VB 6.0 to .Net for the biggest project they had ever attempted before. They survived. Barely.)
That way your department will slowly but constantly expand its capabilities. Then when the opportunity presents itself to do development for an external customer, you will already have accumulated most of the knowledge you need in order to pull it off.
Oh yes, and smacl is right, too: You need solid QA/QM if you want your department to survive long term.
Start laying out (and follwing) your QA rules from day one. Keep them as short and flexible as possible. Add what you discover to be missing, and throw out what proves to be unnecessary or impractical.
Not sure this is what you wanted to know, but I felt the need to say it ;-)