diff --git a/.gitignore b/.gitignore
index a11c5e1..ecb59cd 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,3 +1,4 @@
 tmp/
 log/
 *.sqlite3
+.sass-cache/
\ No newline at end of file
diff --git a/README b/README
deleted file mode 100644
index cff39cc..0000000
--- a/README
+++ /dev/null
@@ -1 +0,0 @@
-http://beathaven.org/
\ No newline at end of file
diff --git a/README.md b/README.md
new file mode 100644
index 0000000..e7ada5e
--- /dev/null
+++ b/README.md
@@ -0,0 +1,28 @@
+# BeatHaven
+Ultimate web jukebox.
+
+## Checking out
+```bash
+$ git clone git@github.com:magnolia-fan/BeatHaven.git beathaven
+$ cd beathaven/
+$ bundle install
+$ rake db:migrate
+```
+Note: you need PostgreSQL installed and added its binaries to $PATH
+
+## Configuring
+add this line to `/etc/hosts`:
+```
+127.0.0.1 dev.beathaven.org
+```
+
+## Starting server
+1st tab:
+```bash
+$ unicorn_rails
+```
+
+2nd tab:
+```bash
+$ rake jobs:work
+```
diff --git a/db/schema.rb b/db/schema.rb
index 3331fb8..20b1a85 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -1,3 +1,4 @@
+# encoding: UTF-8
 # This file is auto-generated from the current state of the database. Instead
 # of editing this file, please use the migrations feature of Active Record to
 # incrementally modify your database, and then regenerate this schema definition.