Please keep in mind that I'm a newbie care provider (beginning this September), but I am a university communications professor. It is in this role that I respond. I wouldn't begin with "Hope you are having a great week!" Seems callous given that you are giving bad news. I am not for a second suggesting you are callous, I expect this is causing you a lot of stress. I'm a neutral third-party, that's all.
Also, I feel you sound too apologetic, as though you really aren't sure you are doing the right thing. You sound tentative.
How about something like this:
I am very sorry to let you know that as of September I will be unable to provide any after school care, as my business plan simply does not afford me that luxury any longer. It has been a pleasure having your child in my day home, and I do wish you all the best as you find other care arrangements for your child. This is one of those times when I wish government regulations did not require me to restrict the numbers of children in my care.
Best,
Your name
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