Branson started his record business from a church where he ran The Student magazine. Branson interviewed several prominent personalities of the late 1960s for the magazine including Mick Jagger and R. D. Laing.[11] Branson advertised popular records in The Student and it was an overnight success.[12] Trading under the name "Virgin", he sold records for considerably less than the "High Street" outlets, especially the chain W. H. Smith. Branson once said, "There is no point in starting your own business unless you do it out of a sense of frustration." The name "Virgin" was suggested by one of Branson's early employees because they were all new at business.[13] At the time, many products were sold under restrictive marketing agreements that limited discounting, despite efforts in the 1950s and 1960s to limit so-called resale price maintenance.[14]
Branson eventually started a record shop in Oxford Street in London. In 1971, Branson was questioned in connection with the selling of records in Virgin stores that had been declared export stock. The matter was never brought before a court and Branson agreed to repay any unpaid tax and a fine. Branson's mother, Eve, re-mortgaged the family home to help pay the settlement.[13]