Before kids can read, they need to understand the concept of literacy. You can break the process into three (non-linear) parts:

1. What I think, I can say.
2. What I say can be written.
3. What is written can be read.

For pre-k, kindergarten, first and second grade “non-readers”: 

You can work on this process in a small group. First, choose a topic to begin discussion. Find a picture that will elicit some conversation. Then, just start talking. What do you see? What is going on in this picture? What do you think? Once the students have some ideas, it’s time to form a quality sentence. Let each student form his/her own sentence. Help them make the best sentence possible. Record each sentence on a chart. Next, practice reading the sentences. You can do this with children that “can’t read” yet. They can remember their sentence because they made it.  Go over each sentence several times, pointing to the words as you repeat it. Finally, ask children to volunteer to read their sentence on their own. Congratulate them for reading! Let them autograph the chart and hang it up on the wall. Let them show other kids/adults how they can read.

Here is an illustrative example:

Day 1: My group of kindergartners includes Jamal, Kevin, Maria and Isaac. We sit together on the floor in a circle. I show them the picture of three kids sitting in a tent. They all start talking at the same time and I encourage all the ideas. The next step is to get one complete thought from each kid. Jamal says, “The kids.. and camping outside and scared… inside with mommy”. I say, “OK, say that again.” He says, “The kids are camping and they scared. This one kid want to go home.” Now my job is to piece together one sentence that makes sense. “The kids are camping and one kid is scared?” Jamal interjects, “Yeah, he want to go home.” On the chart I write:
Jamal: The kids are camping outside and one kid is scared and wants to go home.
I read “Jamal’s sentence” aloud and we move on to the next student until we have a sentence from each student on the chart.

Day 2: We gather in a circle and begin by looking at the picture again. This time, the conversation begins quickly and the kids have a lot more to say. We look at the chart and I read each student’s sentence… and read it again. We read them together (always pointing at the words as we go). Eventually, the kids volunteer to read their own sentences. Then, they all get to sign the chart and we go hang it up on the wall (with the picture taped on if possible). The kids read their sentence to anyone who will listen.