My advice is to upgrade the exhaust system to headers and dual exhaust. You will want a crossover pipe between the two exhausts just after the headers or approximately under the tail shaft of the
trans. You can use a straight piece of pipe between the exhausts or go to an X-pipe. This will help the engine to breathe more effeciently.
You should notice a bit of improvement in performance. Your next step would be to open up the intake into the engine with an intake manifold that is of the dual plane variety. A performance carb for the manifold should be considered also.
These two items should help the stock engine to breathe better and in my opinion is the places to start. The engine internals, camshaft, heads, ignition, ect. can be added later, but the basics of more air/fuel in and better flow out will show results no matter what stage of engine mods have been made. The cost of these additions is really not through the roof and will provide for a good foundation as the engine mods progress.