The good news, your here at step one. You have a sponsor and he is giving you instructions on how to work the steps.
I found out early on that everyone is different; everyone has a personal take that works for them. What worked for me was listening to my sponsor.
I found step one on page 30 of the Big Book when I was asked if I was willing to concede to my innermost self that I was an alcoholic. We had already gone over the physical component in the Doctors Opnion and now the mental twist in More about Alcoholism. The answer then was yes and the answer now is the same.
Great thread. my sponsor had me make a list of ways my life was unmanageable due to do alcohol abuse, he also had me list examples of my powerlessness. He linked unmanageability to the mental obsession ie the things I would throw away for the next drink and the powerlessness to the alergy of the body.