Every finite state machine needs a defined starting point: the initial state, also called the reset state. A state diagram marks it with an arrow from nowhere, or the question names it.
In hardware, flip-flops wake up holding unpredictable values, so the initial state is forced by a reset: an asynchronous clear or asynchronous preset on the state flip-flops, or a synchronous reset input that loads the starting code. Without one, the machine might start in any state, including unused codes.
The initial state is usually chosen to mean "nothing has happened yet":
- a sequence detector starts in "no progress";
- a vending machine starts at zero credit;
- a counter starts at 0.
When tracing, always begin from the initial state, and remember a Moore machine already shows the initial state's output before the first input.