Choose a story that makes you laugh. Don't try to force humor into something that doesn't appeal to you, even if others find it funny. Evaluate whether the story is appropriate for the audience you will have.
Cut the story down to its bare bones. Make it as brief as possible while maintaining the important elements of the story. Eliminate most adjectives unless you can make them highly creative and attention-grabbing. Reword the story with strong verbs and, where possible, use words that sound funny.
Start strong. Open with an intriguing sentence that grabs the audience's attention. Eliminate any lengthy setup or background information, or weave it into the body of the story.
Incorporate all five senses in surprising and creative ways. Evaluate each element of the story to determine whether you can present it in a way that creates a vivid experience for any of the five senses. Use descriptive phrases that present a fresh perspective on mundane or familiar ideas.
Develop leading questions related to the story so you can involve the audience. Establish interaction by asking a question that lets you launch into your story or into some element of the story. Create rapport and the appearance of spontaneity by making it look as though the audience member's response is what sparks your story.
Select details about each character in the story, and choose some to act out in an exaggerated fashion. Determine whether someone in your story can have an accent, an odd walk or an amusing mannerism, for example.
Save your biggest laugh for the ending punch line. Excise the funniest element of the story, and rewrite it so it quickly wraps up the story with a strong punch.