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Subnetting

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cmiller5400

Changing your subnet to 255.255.255.248 would give you only Six hosts per network.

You need to go the other way, 255.255.248.0 would then give you 2046 Hosts per network. Or you could even do a 255.255.252.0 which would give you 1022 hosts per network, all depends on what you want to do with your network and how many possible class B subnets you will need in the future.

Yes VLANS would work as well, but you would then need to add routing to the mix... I don't know if that particular model switch supports layer 3 routing but if not, I believe that you would then need a router involved to connect the vlans.