"Ted could get lonely."
"What would he do?"
"He could go outside looking for a friend."
"Who would he find outside?"
"He could pretend that he is a butterfly so that the butterflies could be his friends. He could drink some nectar."
"What would happen then?"
"He could try to make friends with a woodlouse and end up riding it round the garden." (He's a small Ted but that's stretching it a bit!).
"He could get hit by a falling damson." (This happens in our garden.)
That's just one of the stories. All Granddad has to do is embellish them a little and add the sound effects and funny voices. They are creating the characters and the plot.
We all have storytelling within us. Why, when we get older, do we say we can't think of a story to tell?