If you are writing a novel, an outline serves as a framework to show what action will happen in each chapter, which characters will appear and what major events or plot developments will occur. For nonfiction, an outline notes facts that should appear in your finished book and the order in which they should be presented. In either case, the outline will be the writer's guide to the basic structure of the book.
A first draft is where you give yourself permission to make mistakes. Putting your ideas on paper in a cohesive way is the only goal of a first draft. Do not worry about grammar or spelling mistakes--these will be taken care of in later drafts. Write as much as you can as quickly as you can for a first draft.
Using index cards, summarize in one to two sentences the action in each chapter of your first draft. This serves two purposes: 1. Does each chapter contain enough action? 2. Is this chapter in the correct place? After outlining each chapter on a note card, spread them all out in front of you. Pay particular attention to the flow of your book. Mix the cards up if necessary and try looking at your story from another perspective.
Begin revising your book, organizing your ideas in a cohesive way. Using your outline and note cards, make any changes necessary to make your story stronger. Correct any grammar or spelling mistakes you may have made in the first draft.
It is important to have another set of eyes review your work. A critique partner will spot continuity errors, slow scenes and any grammar or spelling mistakes you did not catch in your first rewrite. More than one critique partner provides you with several opinions of your work.
Choose which suggestions made by your critique partners make sense to you and your story. It is not necessary to use all ideas, but seriously consider the ones that will help to make your story stronger. Revise and rewrite your book implementing the changes you choose.