Let $P(n)$ be the statement $1 + 3 + 5 + \cdots + (2n + 1) = (n + 1)^2$.
The first thing you need to do is to show that $P(1)$ is true. In this case that means showing that $$1 + (2 \cdot 1 + 1) = (1 + 1)^2$$
Now that you have established that the proposition $P(n)$ is true for some integer $m$ (since it is true for $n = 1$), you may assume that $P(m)$ holds for some $m \in \mathbb{N}$.
The final step is to show that $P(m) \Rightarrow P(m + 1)$. Since $P(1)$ holds, establishing that $P(m) \Rightarrow P(m + 1)$ demonstrates that $P(n)$ holds for each $n \in \mathbb{N}$ since $P(1) \Rightarrow P(2) \Rightarrow P(3) \Rightarrow \cdots$.
In this case, to prove $P(m + 1)$ holds, you must show that
$$1 + 3 + 5 + \cdots + (2m + 1) + [2(m + 1) + 1] = [(m + 1) + 1]^2$$
under the assumption that $P(m)$ holds, that is, under the assumption that
$$1 + 3 + 5 + \cdots + (2m + 1) = (m + 1)^2$$