Michael and Alexa Rosenthal had dreamed for quite awhile about owning a business together. Michael, who had spent 17 years as commercial fishing boat captain, was looking for a way to spend more time at home instead of being on the sea for months at a time. With two children and a third one on the way several years ago, Alexa too, could have used a little less traveling, which she did extensively for a nonprofit organization where she worked.

The couple, longtime residents of Bainbridge Island, decided to open a new health club. At the time, the Bainbridge Island Health Maintenance Center had no competition, but by 2001 it was embroiled in one of the largest investor fraud schemes ever in Washington state, and was falling into pieces.

So the couple started working on a business plan to open a new facility once HMS closed its doors. Instead, after submitting the winning proposal to operate the club as it went into receivership for six months, the Rosenthals decided that buying the club would provide a seamless transition to a revived business.

Three days after the receivership ended, the club reopened with the new owners at its helm. And that’s when the real work began for the couple.

“We had a lot of work to do to win the trust back,” Michael Rosenthal said.

In two years, Michael and Alexa, who operate the business together, have turned it around into a viable enterprise, despite having additional competition almost right away. The Bainbridge Island Chamber of Commerce recognized them as the business couple of 2004.

“The Rosenthals were a clear choice since they were able to turn around a business that had essentially let the community down, and revive it into a successful, going concern,” chamber board member Harry Field said in making the announcement via the group’s newsletter. The chamber also noted the business’ support of community groups and charities.

The physical changes to the club, under the new name of Island Fitness, were almost immediate — new paint, the relocation of the reception area so everyone is greeted right away, adding more exercise space by using the building more efficiently. An energy bar selling organic smoothies and other items, as well as a functional training and stretching area were also added, along with a comprehensive fitness program with free classes to members.

But the less tangible changes in the operating philosophy were what the new club really focused on.

“We had a choice to make. Do we set out to get as much market share as we can or do we focus on what we do best? We chose not to operate in a cutthroat competitive manner,” Rosenthal said.

It was, as it turned out, a winning choice. Although “membership is like a revolving door,” as Michael put it, the club has been turning a profit by looking for ways to be unique. One of their strategies is providing personal customer service. For example, if a club member doesn’t come in for many weeks, someone will call to make sure everything’s OK. The club’s retention rate is 80 percent compared to 60 percent national average, Rosenthal said.

The change from running a fishing boat and a nonprofit required some adjusting for the pair, but they see themselves as perfect business partners as they balance each other’s strengths.

With a new baby joining the family shortly after they took over ownership, and two other kids who are now ages 10 and 13, Rosenthal said they make a solid effort not to bring business home so they can focus on building their family. It’s been a little tough — they haven’t been able to take a real vacation in the last two years. But they hope to remedy that in 2005.

Michael said he still feels the sea calling him now and then, and after 20 years on the boat he’ll never see the water the same way most people do. But he uses the same main principals he used on the boat and follows in life: passion and integrity.

“We took a big risk but at the time it didn’t feel like we were taking a risk, it felt like we were following a dream,” Rosenthal said. “We had the passion to do it, and the integrity was a big part of it…We run Island Fitness the way we run our lives.”.