Well, we don't know what the company does, we know very little about it. The only part of it we see is the original office, kept for nostalgia, amongst other things, when the company expanded. There is a warehouse as well, so at the very least one other location. What we see only houses the sales function, plus a bit of admin. There are only two companies in the city providing whatever service it is, and the money is obviously good enough that other jobs just can't touch it, or Hutch wouldn't have been as dismissive of them during the job search, stating that he wouldn't be able to make as much elsewhere.
We don't know that Hutch has never lost clients before. We just know that as the catalyst for this game, he was told their rival was courting their clients, Hutch was told to shore up his portfolio (as, presumably the other guys were also told to do with their clients), and Hutch wasn't successful with two of his. I'd say the issue is more because it was two in a day, and after he had specifically been told to make sure it didn't happen. Businesses lose clients all the time, I bet everyone in that office has had clients drop them at some point, and they're still working there.
Wining and dining and trying to charm a prospective client is no less important when there are just two options available than when there are dozens. In fact, it's probably more important when the options are limited.
