I took over Frostburg State in Smith when it had C- prestige, signed 9 players (6 frosh and three sophs [all jucos]) and by the jucos' senior year I finished the season 28-1, made it to the sweet sixteen before losing, ending my season at 30-2, bringing the school up to an A- prestige.
Keep in mind Smith is pretty depleted at DIII, but still, anything is possible. Filling all of the scholarships is not out of the question; focus on signing "special" players, rather than well-rounded players. Look for guards who are lacking in one area, but make up for it in other areas (for example I had an incredible guard on my team who had 11 BH, but made up for it in most other categories, getting every other core above 60/70). DIII is all about specializing, landing players who aren't necessarily perfect all around, but who will be incredible in certain areas, and that is far from an impossible task with a C- prestige at the DIII level. It isn't easy, but it isn't that hard either.
Recruit locally (if you recruit too far away you will certainly run out of cash) and pick up the best talent you can find. Try to avoid recruiting battles and know that with 8 new players your team is going to struggle through it's first season. The first season is all about EXPERIMENTATION, discover what works and know that your incoming players are bound to have terrible IQs in whatever O/D you choose to run. Switch the lineup after every game (if you feel like it), do some crazy things. It's your first season with this new team, so get a feel for who's good at what and who should play where, so three-four seasons from now you'll know how to make your team click, and possibly have a season like I did with my Frostburg State team.