An initial investment refers to the amount of money that an individual or business puts into a project or asset at the beginning. This investment is crucial for starting a venture, whether it's purchasing equipment, buying property, or funding a new business. The initial investment sets the foundation for potential future returns and growth. Calculating the initial investment involves considering all costs associated with starting the project, such as materials, labor, and permits. Understanding this figure helps investors assess the viability of their plans and determine how long it may take to recoup their investment through profits.