diff --git a/setup.sh b/setup.sh
index 8d4e179..294a842 100755
--- a/setup.sh
+++ b/setup.sh
@@ -112,11 +112,16 @@ podman build --network=host -t sneakyscan .
 # Initialize database if it doesn't exist or is empty
 echo ""
 echo "Initializing database..."
+
+# Build init command with optional password
+INIT_CMD="init_db.py --db-url sqlite:////app/data/sneakyscanner.db --force"
+if [ -n "$INITIAL_PASSWORD" ]; then
+    INIT_CMD="$INIT_CMD --password $INITIAL_PASSWORD"
+fi
+
 podman run --rm --entrypoint python3 -w /app \
     -v "$(pwd)/data:/app/data" \
-    -e DATABASE_URL=sqlite:////app/data/sneakyscanner.db \
-    -e INITIAL_PASSWORD="${INITIAL_PASSWORD:-}" \
-    sneakyscan init_db.py --db-url sqlite:////app/data/sneakyscanner.db --force
+    sneakyscan $INIT_CMD
 echo "✓ Database initialized"
 
 podman-compose up -d