diff --git a/bin/penchant b/bin/penchant
index 21b06e5..d6708d4 100755
--- a/bin/penchant
+++ b/bin/penchant
@@ -23,6 +23,16 @@ class PenchantCLI < Thor
     else
       puts "No git repository detected here. Skipping git hook installation..."
     end
+
+    if !File.file?('Gemfile') && !File.file?('Gemfile.penchant')
+      FileUtils.touch('Gemfile.penchant')
+
+      prepend_to_file 'Gemfile.penchant', <<-RB
+source :rubygems
+      RB
+
+      install_gemfile_penchant
+    end
   end
 
   desc "update", "Update the installed scripts"
@@ -36,18 +46,7 @@ class PenchantCLI < Thor
   def convert
     install
     FileUtils.mv 'Gemfile', 'Gemfile.penchant'
-    prepend_to_file 'Gemfile.penchant', <<-RB
-# ensure git hooks are always installed
-ensure_git_hooks!
-
-# everything in the :local env is assumed to be a sibling directory of this one
-defaults_for env(:local), :path => '../%s'
-
-# reference a github repository with gem 'my-gem', :github => 'username'
-property :github, :git => 'git://github.com/$1/%s.git'
-
-    RB
-    gemfile(:remote)
+    install_gemfile_penchant
   end
 
   method_options :deployment => false
@@ -118,6 +117,20 @@ property :github, :git => 'git://github.com/$1/%s.git'
         puts
       end
     end
+
+    def install_gemfile_penchant
+      prepend_to_file 'Gemfile.penchant', <<-RB
+# ensure git hooks are always installed
+ensure_git_hooks!
+
+# everything in the :local env is assumed to be a sibling directory of this one
+defaults_for env(:local), :path => '../%s'
+
+# reference a github repository with gem 'my-gem', :github => 'username'
+property :github, :git => 'git://github.com/$1/%s.git'
+      RB
+      gemfile(:remote)
+    end
   end
 
   default_task :gemfile
diff --git a/features/cli.feature b/features/cli.feature
index 9f3604d..7e4dbe4 100644
--- a/features/cli.feature
+++ b/features/cli.feature
@@ -61,3 +61,18 @@ Feature: CLI
     Given I have the symlink "tmp/.git/hooks/pre-commit" which points to "tmp/script/hooks/pre-commit"
     When I run "bin/penchant gemfile remote" in the "tmp" directory
     Then the output should not include "git hooks not installed"
+
+  @wip
+  Scenario: Install Penchant into a directory with no Gemfile
+    Given I have the directory "tmp"
+    When I run "bin/penchant install" in the "tmp" directory
+    Then the file "tmp/Gemfile.penchant" should include the following content:
+      """
+      source :rubygems
+      """
+    Then the file "tmp/Gemfile" should include the following content:
+      """
+      source :rubygems
+      """
+      And the output should include "No git"
+
diff --git a/lib/penchant/version.rb b/lib/penchant/version.rb
index 039b934..8ecc4f5 100644
--- a/lib/penchant/version.rb
+++ b/lib/penchant/version.rb
@@ -1,3 +1,3 @@
 module Penchant
-  VERSION = "0.2.18"
+  VERSION = "0.2.19"
 end