diff --git a/README.md b/README.md
index 35a41e4..9546231 100644
--- a/README.md
+++ b/README.md
@@ -19,7 +19,26 @@ git clone https://github.com/username/repository.git
 cd repository
 ```
 
-### 2. Run the Application with Docker Compose
+
+### 2. Create a `.env` File
+
+Before running the application, create a `.env` file in the root directory and add the required environment variables:
+
+```bash
+touch .env
+```
+
+Then, open the `.env` file and add the following:
+
+```ini
+# Environment Variables
+VALID_API_KEY=testtest-api-key-12345
+VALID_APP_ID=app1
+```
+
+This ensures that the application uses secure API keys and app IDs.
+
+### 3. Run the Application with Docker Compose
 
 Once you have the repository cloned, you can easily set up and run the application using Docker Compose. Simply execute the following command:
 
@@ -29,7 +48,7 @@ docker-compose up --build
 
 This command will build the Docker image and start the Flask application in a container. By default, the application will be accessible at `http://localhost:5000`.
 
-### 3. Health Check
+### 4. Health Check
 
 You can check if the Flask application is running by accessing the `/health` endpoint. To perform a health check, run the following command:
 
@@ -45,7 +64,7 @@ If the application is running properly, you should receive a response similar to
 }
 ```
 
-### 4. Stop the Application
+### 5. Stop the Application
 
 To stop the application, use: