diff --git a/documentation/dev-manual/dev-manual-newbie.xml b/documentation/dev-manual/dev-manual-newbie.xml
index cbb815a7f5..2625a44f2c 100644
--- a/documentation/dev-manual/dev-manual-newbie.xml
+++ b/documentation/dev-manual/dev-manual-newbie.xml
@@ -514,27 +514,40 @@
                 The <ulink url='&YOCTO_DOCS_REF_URL;#var-TOPDIR'><filename>TOPDIR</filename></ulink>
                 variable points to the Build Directory.</para>
 
-                <para>You have a lot of flexibility when creating the Build Directory.
-                Following are some examples that show how to create the directory:
+                <para>
+                    You have a lot of flexibility when creating the Build
+                    Directory.
+                    Following are some examples that show how to create the
+                    directory.
+                    The examples assume your
+                    <link linkend='source-directory'>Source Directory</link> is
+                    named <filename>poky</filename>:
                    <itemizedlist>
-                        <listitem><para>Create the Build Directory in your current working directory
-                            and name it <filename>build</filename>.
-                            This is the default behavior.
+                        <listitem><para>Create the Build Directory inside your
+                            Source Directory and let the name of the Build
+                            Directory default to <filename>build</filename>:
                             <literallayout class='monospaced'>
-     $ source &OE_INIT_PATH;
+     $ cd $HOME/poky
+     $ source &OE_INIT_FILE;
                             </literallayout></para></listitem>
-                        <listitem><para>Provide a directory path and specifically name the build
-                            directory.
-                            This next example creates a Build Directory named <filename>YP-&POKYVERSION;</filename>
-                            in your home directory within the directory <filename>mybuilds</filename>.
-                            If <filename>mybuilds</filename> does not exist, the directory is created for you:
+                        <listitem><para>Create the Build Directory inside your
+                            home directory and specifically name it
+                            <filename>test-builds</filename>:
                             <literallayout class='monospaced'>
-     $ source &OE_INIT_PATH; $HOME/mybuilds/YP-&POKYVERSION;
+     $ cd $HOME
+     $ source poky/&OE_INIT_FILE; test-builds
                             </literallayout></para></listitem>
-                        <listitem><para>Provide an existing directory to use as the Build Directory
-                            and use the default <filename>build</filename> name.
+                        <listitem><para>Provide a directory path and
+                            specifically name the build directory.
+                            Any intermediate folders in the pathname must
+                            exist.
+                            This next example creates a Build Directory named
+                            <filename>YP-&POKYVERSION;</filename>
+                            in your home directory within the existing
+                            directory <filename>mybuilds</filename>:
                             <literallayout class='monospaced'>
-     $ source &OE_INIT_PATH; $HOME/mybuilds/
+     $cd $HOME
+     $ source $HOME/poky/&OE_INIT_FILE; $HOME/mybuilds/YP-&POKYVERSION;
                             </literallayout></para></listitem>
                     </itemizedlist>
                 </para></listitem>