diff --git a/Makefile b/Makefile
index 99f7843..d42c7f3 100644
--- a/Makefile
+++ b/Makefile
@@ -75,4 +75,7 @@ setup:  ## Full local setup (venv + deps + migrations)
 	cp -n .env.example .env || true
 	$(MAKE) install
 	$(MAKE) migrate
-	@echo "\n✅ Setup complete! Run: make dev (backend) / make dev-frontend (frontend)"
+	@echo "\n✅ Setup complete!"
+	@echo "    Activate the CLI:  source backend/.venv/bin/activate"
+	@echo "    Start backend:     make dev"
+	@echo "    Start frontend:    make dev-frontend"
diff --git a/README.md b/README.md
index 1e5dd37..51faeae 100644
--- a/README.md
+++ b/README.md
@@ -182,6 +182,8 @@ cd smriti
 cp .env.example .env
 # Edit .env to add your API keys (OpenAI, Anthropic, or both).
 # Leave keys commented out to use mock mode (no real LLM calls).
+# .env is the primary config path. config/providers.yaml is optional
+# and gitignored — you do not need it for a standard setup.
 
 docker compose up -d postgres    # start the database
 make setup                       # backend venv + deps + migrations + CLI + frontend