Small teams so everyone plays a lot
Here is a statement to think about: "When kids play a lot they are happier than when they sit on the bench much of the game"
Now, this would appear to me to be a self evident truth. I don't think I've ever seen a kid sit on the bench for an entire game, or most of the game, and really be "happy" about the game, no matter if the team won or lost. Yet, coaches constantly seem amazed that the kid who never played isn't "happy the team won". The reality is, kids on a hockey team want to play a lot in the game, and if they don't they aren't happy and quit. If you want all the kids to play hockey next year, then they all have to play a lot. If you don't care if they quit, put them on the bench.
I was once at a tournament for our Squirt Division, and one of the teams showed up with 20 kids on the team. During the course of the tournament, only about 10 kids played a regular shift. Some of the kids didn't even get into the "big" games at all. But even if all the kids had played equally, there just isn't enough ice time to go around for 20 kids when you are talking about 12 minute running time periods. I'll bet anybody that some of the 20 kids from that team don't play next year, and I'm giving 10 to 1 odds.
It seems to me that some programs look at the NHL and think, "well, they have 20 on a team, so that must be right". Well, its right for the NHL, but not for kids. My philosophy is to always try to have a small team in numbers so that everyone plays. For the Mite and Squirt divisions, with the short periods, I believe 10 and a goalie is perfect. Two full lines, everybody plays half the game. The last 2-3 minutes of a close game the best five skate. If someone is sick or injured, we play 9, and everybody plays more and is even happier. Kids would rather play with 8 or 9 skaters, and play a ton, than have 20 on a team and rarely see the ice. If you don't believe me, just ask them. In the older divisions, with the longer periods and checking, 15 is a good number (9 forwards, 4 defense, 2 goalies). However I've coached Peewees and Bantams with 10 and won AA tournaments. I'd much rather have two teams of 10 than one of 20.
Our Vail Squirt program only had 20 kids try out one year. We made two teams of 10 players each. We practice with all 20 on the ice to share the expense. There are plenty of tournaments to go to for ice time for games. All the kids play a ton, and they love it. Sure the kids get tired sometimes. But they are tired and happy.
Nobody likes to sit on the bench, and you don't improve watching the other kids play. If at all possible, structure your program with more teams with fewer players per team. You can still practice together to save money, and find tournaments for game ice. Or play each other at practice.