Hammer wood stakes into the ground to mark the foundation's four corners. Tie rope from stake to stake to mark the foundation's perimeter.
Attach a small box blade to a tractor. Start leveling in the foundation outline's lowest corner. Dig away just the sod from this corner, about 2 inches in depth. Work your way across the foundation outline. Have a friend check the area with a 4-foot level as you excavate. You may need to consider building a retaining wall next to the garage if you dig your foundation in a steep slope.
Rent a small backhoe from your local building supply or rental store. Use the backhoe to dig the footing trench. Make the trench approximately 16 inches wide and between 12 to 48 inches deep, depending on the building codes for your local municipality.