There are a many ways that you can make your stories for your flannel board.
I learned that you don't have to use felt for everything. Felt is nice for scenery and big objects that are a solid color. It is best to buy the pre-cut felt squares (more like rectangles, they are 9" X 12") in the craft section and not the felt by the yard. The squares are stiffer plus there are so many more colors to choose from. The squares are about $0.39 each not on sale.
For many story pieces, including the characters it is helpful to use a sew in interfacing. I was pleasantly surprised by this. It sticks wonderfully to the flannel board and the pieces are lightweight.
This is one of the things that I learned from the flannel board book from the library I mentioned here.
I bought a medium weight interfacing for less than $1.50 a yard.
Now I could not find this interfacing at Joanns fabric store, all they had in stock was iron-on interfacing. I didn't really want to buy that and try it so I went to Hancock's fabrics and found just what I wanted and will go back to get more when I need it.
You can also buy it on line. I was tempted to if I didn't find what I wanted at Hancocks. This is a great little bit of info on interfacing.
You will also need something to draw with. I wanted markers. You could use fabric paints also. I first tried some Crayola markers, NOT the washable kind, because I already had those and wouldn't have to go buy any special ones. I drew on the white felt, then I tried to smear it. Boy did it smear! and the next day smeared some more. So they would not do. I thought permanent markers would work so I bought a big colorful pack of BIC. They had a big selection of colors and were less expensive than Sharpies. I tried it on the felt and it smeared a bit. Luckily I waited a bit and did the smear test again with no smears. They did not smear on the interfacing either.
Here is a picture I am going to trace. I am not a good freehand artist at all. I want the details to be on each piece so I am using interfacing not felt to trace with. The interfacing is on the left side and felt on the right. See what a difference it makes to be able to see through as you're tracing?
Here is how I make pieces on felt. If they don't need any detail and just solid color, like the mountains in this story, it is easy to just cut freehand. The Three Billy Goat story is also one that is in the book I used. There are a lot of stories and has the pictures for you to draw and use.
For the goats, I used a pencil first, and made the light marks on the felt. Then I went over the lines with the markers and added the details. Then I cut out the figure just out side of the lines.
This ogre is traced onto interfacing. This story shows the mix of felt and interfacing in the pieces, works out perfect.