After taking out most of the opponents you automatically return to the battle tower. Once there you can upgrade your runners and send them out for ingredients to make more potions (plus malachite ore and diamonds to sell for gold, if you don't need anything for enchantments).
Keep moving; hit target lock for towers/nests and circle around while holding the Fire Breath trigger/key down. I practiced flying around in the first transformation sequence, where there are only a couple opponents, which helped me get my bearings faster upon getting the battle tower.
You should have one skill point (possibly two if you explored the start of the fjords) that you can put into Dragon Spirit, which should help you conserve healing potions.
On the Xbox, a burst of speed is triggered by the left shoulder button. On the PC this is done by right clicking.
first time dragon help needed pleaseWhy is dragon so hard?