It's time to enter our chroot'ed environment in order to install the rest of the software we need.
Enter the following command to enter the chroot'ed environment. From this point on there's no need to use the $LFS variable anymore, because everything you do will be restricted to the LFS partition (since / is actually /mnt/lfs but the shell doesn't know that).
cd $LFS &&
chroot $LFS /usr/bin/env -i HOME=/root \
TERM=$TERM /bin/bash --login
The TERM=$TERM construction will set the $TERM value inside chroot to the same value as outside chroot which is needed for programs like vim and less to operate properly.
Now that we are inside a chroot'ed environment, we can continue to install all the basic system software. Make sure you execute all the following commands in this and following chapters from within the chroot'ed environment. If you ever leave this environment for a reason (say when you reboot or something) don't forget to mount $LFS/proc again like you did earlier and to re-enter chroot before you continue with the book.
Note that the bash prompt will contain "I have no name!". This is normal; Glibc hasn't been installed yet.