Create conflict. Think about it: a story without a problem to solve is rather boring. There are multiple versions of conflict in the literary sense. These include people versus other people, as in a rivalry; people versus society, as in a revolution; people versus nature, as in a hurricane; and people versus themselves, as with an addict. Decide which of these conflicts you want to incorporate into your story.
Create suspense. Keep the reader wondering how the conflict is going to be resolved. This is largely dependent on empathy, our ability to identify with the feelings of others, including fictional characters. Build suspense as the story progresses by not making the resolution, or outcome, too obvious to the reader.
Develop the story. According to "The College Handbook of Creative Writing," development often makes up the majority of the plot. Tell the reader more about the characters and setting, specifically why they are there, what they are like, even what their backgrounds are and what they think and feel. Make sure that there is a reason for every event you include and that those events build toward the climax, or resolution.
Create a plausible ending. In good literature, there is often a bit of wisdom or sense excitement imparted by the way the suspense is resolved at the end. This does not mean that the problem with which you began must be solved. Instead, it means that the events must conclude in a logical fashion. For example, if your story is about a man's quest to become immortal, you can choose the realistic route and simply conclude with what he learns from his experiences. Or you can end with him drinking from the Fountain of Youth. Either ending is fine provided that you make the conclusion believable.