While many large companies choose to operate their various businesses under different names with their own unique identity (think, Pepsi and Pizza Hut or Apple and Beats), Virgin has opted to label all its operations under its signature brand. It's a decision Virgin founder Richard Branson admits has its own set of both advantages and challenges.
"Because the Virgin brand is well-trusted globally, if we set up a new venture and put the Virgin brand to it, it gives it a leg up," Branson said in an interview with Inc. president and editor-in-chief Eric Schurenberg.
On the other hand, if a Virgin business is ever in trouble, like the Virgin Megastores that were shut down in Europe and North America, Branson can't just file for bankruptcy. Instead he has to spend millions to make sure they bow out gracefully from the market.
"We would never let a Virgin company go bust," Branson said. "We have to stand by all of our companies, and it costs us a lot more."
This committed investment into all the Virgin arms is well worth the risk, according to Branson. He revealed that "when music retailing was on its knees," the company spent tens of millions of pounds to prevent the collapse from destroying the rest of the Virgin brands.
"Reputation is all you have in life, and I think it's worth spending that money," he said.
To hear more from Richard Branson on how he's maintained Virgin's reputation, watch the video below.