A money trail begins when and where money enters the local economy and ends when and where it exits. Think of money trails as the roads that lead into town, circulate in town and lead back out of town. The amount of time money circulates, the number of times it changes hands and the path it follows has a profound effect on how much benefit it provides local residents, businesses and governments.
Individuals are free to live, work and spend wherever they wish, inside or outside the local economy. Likewise, businesses and governments are free to hire employees and purchase goods and services from inside or outside the local economy. This free flowing economic structure allows money a wide range of movement. It also sets the stage for aggressive economic development efforts aimed at directing and redirecting money along any given money trail. As a result, competitive economic development efforts pit towns, cities, counties, regions, states and countries against one another. Again, there are winners and losers!
Magnetic Communities recognize that money entering a community creates a trail of benefits and missed opportunities as it works its way through the local economy. In response, Magnetic Communities identify, develop and implement strategies that maximize economic benefits and minimize missed opportunities, thereby maximizing prosperity.