If you calculate your hyperfocal distance to be .7M, subjects as close as .35M should be in acceptable focus. A flower at .4M for example should be in acceptable focus. A flower at .2M likely is not in acceptable focus. If your subject is closer than .35M, then you either have to modify your aperture, use a larger format sensor, use a wider focal length, other techniques such as focus stacking to get the shot.
Part of your original assumption is incorrect I believe. If you want to make sure that the background is tack sharp by focusing at 1M instead of .7M, you are also pushing out the nearest objects that are acceptably sharp. You should be fine focusing at the hyperfocal distance, while still achieving a tack sharp background at infinity. Some people do say to focus at the hyperfocal distance, then a few feet further to "be safe". I think this is OK, but I would rather just stop down a bit if I am only at f/11 to begin with. If you are already at f/20 or similar you might not want to do that, and you probably don't need to anyways.
I think this question is already covered in:
What is "Hyperfocal Distance"?