diff --git a/README.md b/README.md
index 8d5802d..55ff16e 100644
--- a/README.md
+++ b/README.md
@@ -4,6 +4,10 @@ Running in [#lobby:it-syndik.at](matrix:r/lobby:it-syndik.at).
 
 ## Setup
 
+For all these steps, either install the binary using `cargo install` and then run it as
+`its-matrix-bot`, or run the project directly from the repository using `cargo run --` (e.g. `cargo
+run -- setup`).
+
 1. Copy `config.toml.example` to `~/.config/its-matrix-bot/config.toml` (or some other location
    later specified using `-c, --config`)
 2. Run first-time setup using `its-matrix-bot setup [-h HOMESERVER_URL] USERNAME` and enter the bot