The youth volunteering charity vInspired plans to open the first of its chain of charity shops next year.
Terry Ryall, the outgoing chief executive of vInspired, told Third Sector that the retail outlets would be aimed at young people and would provide them with the chance to take part in retail apprenticeships and other training.
"We’ve done a business plan and, if we get the model right, it has the potential to generate a long-term income stream," she said.
"We’re researching what young people want. We don’t want to buy stock, but there are other ways of getting stock other than second-hand donations, such as shops wanting to give their surplus stock to charitable causes and young people making things."
The charity also plans to trade at festivals and set up a network of youth markets where young people can sell items they have made themselves.
"This entrepreneurial younger generation don’t just want to consume; they also want to create and make something that people will love," she said.
Ryall said the charity hoped to start trading next year, but added that it had not put in the business plan any projected surplus from trading for the first year. "It would be folly to say how much income we would get at this stage," she said.
The income of the volunteering charity fell from £54.3m to £5.3m in the year to March 2012 after the Office for Civil Society significantly reduced its funding.
The charity announced in January that Ryall, who has led the charity since it was founded in 2006, would leave this month to pursue projects in the US and spend more time sailing.
Read our interview with Terry Ryall here.