Consider $f(x)=x^3+x^2-1$; then $f'(x)=3x^2+2x$, which vanishes at $-2/3$ and $0$. Therefore $f$ has a local maximum at $-2/3$ and a local minimum at $0$. Since
$$
f(-2/3)=-\frac{8}{27}+\frac{4}{9}-1=\frac{-8+12-27}{27}=-\frac{23}{27}
$$
we see that the equation has exactly one real solution. Since $f(0)=-1$ and $f(1)=1>0$, we know that this root is in the interval $(0,1)$.
For approximating the root we can use Newton’s method:
$$
x_{n+1}=x_n-\frac{f(x_n)}{f'(x_n)}
$$
starting at $x_0=1$. Then
$$
x_1=1-\frac{1}{5}=\frac{4}{5}=0.8
$$
and
$$
x_1=\frac{4}{5}-
\frac{\dfrac{4^3}{5^3}+\dfrac{4^2}{5^2}-1}
{3\dfrac{4^2}{5^2}+2\dfrac{4}{5}}=
\frac{4}{5}-\frac{1}{5}\frac{64+80-125}{48+40}=
\frac{4}{5}-\frac{19}{5\cdot 88}=\frac{333}{440}\approx0.7568
$$
Since the method provides alternatively an approximation by excess and one by defect, we can conclude the first decimal digit is $7$.
To check again,
$$
f(0.7)=-0.167,
\qquad
f(0.8)=0.152
$$
so the first decimal digit is $7$.
Actually Cardan's formulas give you “explicitly” the root. Set $y=1/x$; then the equation is $y^3-y-1=0$; by Cardan's formula the only real root is
$$
y=\sqrt[3]{\frac{1}{2}+\sqrt{\frac{1}{4}-\frac{1}{27}}}
+\sqrt[3]{\frac{1}{2}-\sqrt{\frac{1}{4}-\frac{1}{27}}}
\approx 1.32471795724474602596
$$
and
$$
x=\frac{1}{y}\approx0.75487766624669276005
$$
According to bc, with this value for $x$ we get
$$
f(x)=-0.00000000000000000001
$$
so it seems a pretty good approximation.
Your transformation can work as well, but it's more complex. Consider
$$
g(x)=x^3-x^2+2x-1
$$
Then $g'(x)=3x^2-2x+2$ has negative discriminant, so the function $g$ is increasing. Its zero is between $0$ and $1$, and you can find it with a similar method. Then you need to find its positive square root.