How do small clubs survive?

My son plays for a small club. When Liverpool had a tryout, 40 kids showed up. When our club had an open tryout, 2 kids showed up. Yet our club has a few flight 1 teams in some age groups. We love our club for its proximity to home, coaching and for the ample playing time my kid is getting. But, I'm a little concerned if one or two players leave, my team will no longer be competitive and we will be forced to leave as well. Thoughts?