Outsourcing Product Development as Joint Venture - Seatable Shows How It's Done

About this episode

As a founder, you often face the challenge of having to focus on all areas of your business simultaneously. Product development, marketing, sales – everything demands your attention. But what if you consciously concentrate on specific areas while outsourcing other parts of the business?

Christoph Dyllick-Brenzinger and his brother have chosen an unconventional path with Seatable: They rely on a development partner in China and focus mainly on marketing and sales. This strategy demonstrates that it can make sense for tech startups to separate product development from business operations.

Why Seatable Partners with China

The decision for an international partnership was strategically well thought out for Seatable. Instead of building a large development team themselves, the founders leverage the expertise and resources of their Chinese partner. This division of labor allows them to fully concentrate on their strengths: market development and building customer relationships.

However, this approach also brings challenges. Language and cultural differences must be mastered, and coordination across different time zones requires clear structures and processes.

When Can Product Responsibility Be Delegated?

A central question for every founder is: When can I delegate product responsibility? Seatable shows that this can be possible early in a company's life if the right partners and structures are in place.

The key is that you as a founder remain closely involved in the feedback and development process. Customer feedback must be filtered and prioritized so that the right product decisions can be made.

Marketing Success Through TikTok

A particularly interesting aspect of Seatable's strategy is their success on TikTok. The platform has brought the company unexpected reach and concrete business benefits. This shows how important it is to explore and test new marketing channels.

Besides TikTok, Seatable uses various sales channels and has developed a well-thought-out marketing funnel. SEA and SEO also play a role in their overall strategy.

Challenges of International Cooperations

Collaborating with an international partner brings specific challenges:

• –Cultural differences: Different work styles and communication approaches must be understood and respected
• –Language barriers: Clear communication is essential to avoid misunderstandings
• –Time zone differences: Meetings and coordination must be carefully planned
• –Legal aspects: International contracts and regulations must be considered

Collecting and Filtering Feedback

A critical success factor is systematically collecting and filtering customer feedback. Seatable has developed processes to identify relevant feedback and incorporate it into product development. Not every piece of feedback automatically leads to changes – it must be strategically evaluated.

Learnings for Other Startups

Seatable's approach reveals several important insights for other founders:

Focus pays off: By concentrating on marketing and sales, the founders can excel in these areas instead of spreading their energy too thin.

Partnerships can accelerate: An experienced development partner can shorten time-to-market and use resources more efficiently.

New channels bring surprises: The TikTok success wasn't planned, but shows the value of experimenting with different marketing approaches.

Structures are crucial: International cooperations only work with clear processes and regular communication.

Seatable's path proves that there are various successful models for tech startups. The conscious separation of product development and market development can be a valid strategy – provided the right partners and structures are in place.