Here's step one:
(blue and orange in honor of the BSU Broncos of course)
Here's step two:
See how the numbers are written in the center of each unit? That's on purpose. They're written there to make it clear that the numbers are a way of precounting the units. Numbers at the ends of units turn the ruler into a number line, which is a more sophisticated concept according to Van de Walle. We then finished measuring names.
This idea comes from Van de Walle's book below. I'd highly recommend it! I'm trusting that when we make the transition to standard rulers, my kids will have a much better understanding of how they work, thanks to Van de Walle's thoughts.
(He has a new edition out now.)