Palmer Luckey, My First Million
Solve The Incentive Structure Before You Solve The Problem
Check how current providers get paid before you build your solution.
Palmer Luckey says
Private prisons are prepaid per occupied bed by the government, which basically says the bed is already paid for, so if it's not full they're not locking up enough people. A better model would pay the operator only after a person serves their term and then stays out of prison for five years. Cost Plus defense contracts pay a fixed percentage of profit on top of whatever is spent. Anduril went through a full competition, a shoot off between different companies, and you can't take no risk and expect all of the reward.
Try this
Write out how your target market's current providers get paid and whether it matches what the customer actually needs, before building anything.