Firstly, write your equation in summation notation. It makes it easier to work with in my experience.
$$\sum_{k=1}^n\frac{1}{k(k+1)}=1-\frac{1}{n+1}\tag 1$$
Now, the induction proof is done in three steps.
Firstly, enumerate the base case $n=1$
$$\frac{1}{1\cdot 2}=\frac12=1-\frac12$$ so it is true.
Second, assume it true for a given $r\in \Bbb N$:
$$\sum_{k=1}^r\frac{1}{k(k+1)}=1-\frac{1}{r+1}\tag 2$$
and use this to prove it true for $n=r+1$, i.e. that $(2)$ implies: $$\sum_{k=1}^{r+1}\frac{1}{k(k+1)}=1-\frac{1}{r+2}$$
To do this, add the $(r+1)$th term to the sum of $(2)$.
Then conclude your proof by induction, explaining that having showed the statement true for the base case $n=1$, and the $n+1$th case when the $n$th case has been assumed, so it is true for all $n\in \Bbb N$