The general structure of a proof by induction is as follows. (Here $P$ is some propery of natural numbers.) Note that there are 2 (not 3) essential steps - assuming $P(n)$ and using some reasoning to get $P(n+1)$ is part of the same step.
Theorem. For all $n \in \mathbb N$, $P(n)$.
Proof.
- $\dots$ some reasoning $\dots$. Therefore $P(0)$.
- Take $n \in {\mathbb N}$ and assume that $P(n)$. $\dots$ some reasoning $\dots$ Therefore $P(n+1)$.
Hence, by induction, $P(n)$ holds for all $n \in \mathbb N$.
The general structure of an $\epsilon$-$N$ proof is as follows. (Here $p(n)$ is some expression in $n$ that should eventually become small).
Theorem. For all $\epsilon > 0$, there is an $N \in \mathbb N$ such that for all $n \geq N$, $p(n) < \epsilon$.
Proof. Let $\epsilon > 0$. Take $N = \dots$ some clever expression in $\epsilon$ $\dots$ and take $n \geq N$.
$\dots$ some reasoning. Therefore $p(n) < \epsilon$.
In practice, a tricky part is to figure out what some clever expression in $\epsilon$ should be. It often is beneficial to leave that open and only at the very end out figure what you should have taken there to make $p(n) < \epsilon$ hold.