Start with a normal git repo via [git init]; add your files, get it all set up. Then do this:
cd repo
Now you can copy-paste this...
mv .git .. && rm -fr *
mv ../.git .
mv .git/* .
rmdir .git
git config --bool core.bare true
cd ..
Don't copy/paste these, you need to change repo name...
mv repo repo.git # rename it for clarity
git clone repo.git # (optional, if you want a live repo on the server where you have the bare repo)
Then you can clean up old branches like daily and daily_grind, as needed.
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