Small steps/goals are indeed key!
The very first night I decided I was truly sick of being so heavy, I tried to go for a walk. I made it all of 1/10 of a mile before I was out of breath and my back felt like it was going to snap. I ended up walking a total of 1 mile that night, and it was torture to me.
Yet, the next night I went back and walked 1.1 miles, and the next I walked 1.1 miles but did it about 20 seconds quicker than the night before. Skip ahead to now, and I currently walk at least 3 miles a day 5 days a week, and have gone from walking at a rate of 2.2 mph to anywhere from 3.0 to 3.4 mph. Every night from the start of my weight loss until now, I have looked for the little signs that prove I am making progress.
Even though I may not see much difference when I look in the mirror, I have had many people say that they have noticed I have lost weight. More important for me personally, my back feels a million times better. Although I still have a long way to go in terms of weight loss, it feels so good to be able to walk around a store without having to lean against something every two minutes because I am out of breath and my back is on fire.
I know it seems like your goal is light years away, but as others have said, just look for little signs of progress. Time has a way of passing quick enough if you let it. Just keep at it!