Finger Puppet Set

Start with a catchy beginning to draw listeners in
For instance, a suspenseful start such as, "One stormy night, as I lay awake listening to the wind rattling the shutter"

Avoid repetitive fillers like "and", "uh", "then", "now", "mmm", "well", etc
How long would you listen to someone who talks like this, "Well, let's see. One day, um, as I was, uh, going to the store, I, mmm, saw, uh, now let me think, I, uh, I saw a, now just a minute, where was I"?

Know your audience
Your story should be of interest to your listeners. For example, if all your friend ever wants to talk about is his favorite team, he's probably not going to be very attentive if you want to tell him all the blooming details about your tour of the botanical gardens last summer.

Plan your beginning, middle, and end
Good stories always have a beginning (introduction to characters and situations), middle (usually a problem that needs a solution), and an end (how the problem was solved). Think about the beginning, middle, and end of your story and plan how you will move from one part to the next smoothly.

Keep their interest
Using details that involve the five senses will keep them listening. For instance saying, "The soft black earth smelled damp and musty when my head hit the ground with a thud," is more interesting than saying, "My head hit the ground."

Keep it short
Don't tell what's unnecessary or unrelated to the message you want to share. Get to the point.

Use humor
If you can find a way to put into words the things that make you laugh, you'll likely have your audience laughing, too.

Express yourself
Effective communication includes the use all your communication tools: facial expression, tone of voice, voice modulation,gestures, body language, etc. Remember that verbal language (the words) is really only a small part of the whole message that you communicate to others

Use silence
Pauses emphasize a point and can be used to create suspense

Satisfy them
Make your ending satisfying to your audience. A one-sentence summary can signal the finish of your story. For example, saying, "And that is how I came in first," will let everyone know that your story is done.