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Get the workshop working. Build a forestry, that is where the money lies.
I can't tell you how because the problem wasn't described detailed enough and I am not playing the guessing game.
Grants are for getting you started, not for sustaining your prison for the entire game.
Parole is a cashcow if you use Low Sec prisoners.
Maybe you are being a little impatient?
Im sure if you let the game run for some days you will have plenty of money to expand.
Regardless your question, I dont think you are missing anything. Those are the best ways to get money, parole (you get more with min sec, like crazy money) and the workshop.
-Prison "incidents". If one of your prisoners acts out, it resets the counter, which can cost you several thousand a day. Make sure their needs are met, and keep them happy. Don't let the meds near the many snitches in min sec.
-Too many staff. You really want to keep your staffing down to a minimum. Put your prisoners to work cleaning, doing laundry, and cooking. Use CVs over patrols, and remote control doors.
Also, you only have three prisoners working at your workshop? Your workshop is WAY too small.
Few other tips. Start out with min only. They are easy to take care of, and won't resist if you try and cram all of them into a very small space. Your min section should be a cash farm, piling in as many bodies as you can, and barely keeping them alive. As with most businesses, if you want to make money, you can't afford to be nice. Then, once you have some cash, you can start to expand and focus on reformation.
- Your Workshop should be big.
- Once you've built the basic room (without putting equipment in it), check the maximum number of prisoners you can assign to the room (that number is based on the size of the room).
- Then buy and install your workshop equipment to suit that number. So if you can assign 16 prisoners, assign all of them to the room, then buy 6 saws, 6 presses, and 4 wood working tables.
- Install as many tables as you can without impeding traffic flow in the room.
- Build a "forestry" and make it massive. It's a slow process to get your timber, but if your forestry is say 20 x 40 squares then your guys won't have used all that wood before the next set of trees are cut down. Forestries run automatically. Spare wood also sells for quite a lot of money if you want to get rid of some supply.
- Make sure your "Regime" allows for 2 x 3-hour work periods per day, with a "break" in the middle as a normal free period to allow your prisoners to use the bathrooms etc. Keeps them happy. Anything less than 3 hours will give you very little production output.
- Make sure you maximize the number of workshop and carpentry teaching sessions in a day. Those prisoners not attending the sessions will work in the workshop as normal.
- Assign a min of 3 guards to the room on a permanent basis, or one guard and one armed guard.
- Install fire sprinklers in the room and connect them to the water supply.
- Build a sizeable "exports" area by your roadway. 30 sq.m should do.
- Make sure you have enough workmen to carry all the workshop supply items back and forth. I have 20 or so working in my prison of 120. All raw materials and finished products have to be carried to and from your workshop by your yellow workmen friends. If your workshop is far away from your "exports" room area by you roadway then it will take some time for them to get back and forth.
- Install metal detectors at the entrance ways. Prisoners like to steal tools.
- Once you have the knack down, build more workshops. I have 3 with +- 12 maximum prisoners per workshop.
Even the best builder ends up with space to spare. Put Forestry in every place you can. It's something cheap and useful to put between your cells and your outer walls.