filtering - Multiple selection filter

I am working on a design, however, I have hit a bit of a roadblock on a multiple selection filter. The list of filter values will not be very long.

I assume that users will not know all the available filter values, so I think search wouldn't work in this case.

I have created a basic flow - shown in the image below. Is there a better way of doing this or does this way work?

Answer

Take a look at

http://ivaynberg.github.io/select2/

They have great examples, I think you should use this one Select2 Lifecycle.