diff --git a/README.md b/README.md
index ebe56877..cb099b1b 100644
--- a/README.md
+++ b/README.md
@@ -57,9 +57,10 @@ npx @sanity/plugin-kit init sanity-plugin-testing-it-out
 cd sanity-plugin-testing-it-out
 npm run link-watch
 
-# In another shell, link the plugin to your Sanity studio
+# In another shell, link the plugin to your Sanity studio using the command indicated by link-watch
 cd /path/to/my-studio
-yalc add --link sanity-plugin-testing-it-out && yarn install
+npx yalc add sanity-plugin-testing-it-out && npx yalc link sanity-plugin-testing-it-out && npm install
+
 ```
 
 Now, configure the plugin in sanity.config.ts (or .js) in Sanity Studio:
diff --git a/src/actions/link-watch.ts b/src/actions/link-watch.ts
index 6eeb8aa9..158a2ed1 100644
--- a/src/actions/link-watch.ts
+++ b/src/actions/link-watch.ts
@@ -25,6 +25,7 @@ import path from 'path'
 import log from '../util/log'
 import {getPackage} from '../npm/package'
 import outdent from 'outdent'
+import {fileExists, mkdir} from '../util/files'
 
 interface YalcWatchConfig {
   folder?: string
@@ -38,7 +39,7 @@ interface PackageJson {
 
 export async function linkWatch({basePath}: {basePath: string}) {
   const packageJson: PackageJson = JSON.parse(
-    fs.readFileSync(path.join(process.cwd(), 'package.json'), 'utf8')
+    fs.readFileSync(path.join(basePath, 'package.json'), 'utf8')
   )
 
   const watch: Required<YalcWatchConfig> = {
@@ -55,8 +56,16 @@ export async function linkWatch({basePath}: {basePath: string}) {
     //delay: 1000
   })
 
+  // ensure the folder exits so it can be watched
+  const folder = path.join(basePath, watch.folder)
+  if (!(await fileExists(folder))) {
+    await mkdir(folder)
+  }
+
   const pkg = await getPackage({basePath, validate: false})
 
+  concurrently([watch.command])
+
   nodemon
     .on('start', function () {
       log.info(
@@ -75,6 +84,4 @@ export async function linkWatch({basePath}: {basePath: string}) {
       log.info('Found changes in files:', chalk.magentaBright(files))
       log.info('Pushing new yalc package...')
     })
-
-  concurrently([watch.command])
 }