Are you sure the bootloader is there? Also fuses have to be set correctly.
Remove RTS connected to the RESET pin, that does not belong. Connect a reset button that you can press to ground the reset pin. Tap the button at the beginning of upload.
If you have an FTDI Basic it has a DTR pin that you can connect to a 0.1uF capacitor, then connect the other side of the capacitor to the reset pin of the MCU. That would provide a reset pulse at beginning of upload. If you look at your Nano and follow the traces on it or look at a Nano schematic (Arduino brand or Chinese knock off), you'll notice that is how they are wired.
You can use the Uno bootloader and fuse settings for your standalone chip, and that would be better than Nano. in fact, you can put the Uno bootloader and fuse settings on your Nano and then upload to it with the Uno settings. That would give you more flash space and you would be using the Optiboot bootloader. I usually bootload my Nanos and Pro Minis with the Uno bootloader then I just treat them like small Unos. All my ATmega328P 16MHz based boards, including lone ATmega328P alone on a breadboard with a crystal are Unos, it keeps things simple. If you have an LED and resistor connected to digital pin 13 (pin 19 of the DIP package), and tap the reset button, you'll notice it flashes 3 times rapidly, that indicates your bootloader is ready.
// Put an LED (with resistor) on the following pins:// 9: Heartbeat - shows the programmer is running// 8: Error - Lights up if something goes wrong (use red if that makes sense)// 7: Programming - In communication with the slave