diff --git a/README.md b/README.md
index 53a0bd0..45a275d 100644
--- a/README.md
+++ b/README.md
@@ -3,3 +3,19 @@
 Nyancat rendered in your terminal.
 
 [![Nyancats](http://i.imgur.com/snCOQl.png)](http://i.imgur.com/snCOQ.png)
+
+## Setup
+
+First build the C application:
+
+    make
+
+You can run the C application standalone. It will prompt you to select a color mode.
+
+    ./nyancat
+
+To run the telnet server, use:
+
+    sudo ./nyancat.py
+
+(The server will only try to start on port 23, so you must be root)