Last updated: 03 September 2025
Growth strategies during high inflation: at a glance
- What do I need to know? Persistent inflation presents a challenge for finance leaders and business owners that are unsure how to balance profitability with competitiveness.
- Why does it matter? Price rises are not the only way to safeguard your company’s viability.
- What does it mean for me? Targeted price increases and investments can help you avoid making tactical errors in a precarious financial environment.
Over the past decade, businesses have endured significant financial uncertainty. First Brexit, then coronavirus, followed by a devastating war in Europe.
As a result, companies have experienced an extended period of high and unpredictable inflation. And while inflation remains stubbornly high, finance leaders and business owners are faced with a rapidly evolving set of challenges.
This article highlights practical and strategic measures you can implement to mitigate effects of inflation and achieve growth in difficult times.
Six business growth strategies for finance leaders during periods of high inflation
1. Protect and develop talent
In a tight labour market, retaining your most important asset – your employees – is a priority. Losing a member of staff can reduce valuable expertise, which is not always possible to replace. Investing in your workforce by upscaling and retraining will incentivise talent to stay, even in tough times.
Creating a supportive culture with attractive benefits is imperative in preventing talent from moving on. Companies may choose to incorporate periodic salary reviews to stop competitors from poaching their best employees.
2. Quickly adjust prices and promotions
Price changes can be a valuable tool when adapting to inflation, provided they’re handled with care.
When commodity prices rise, due to supply chain disruption, it’s easy to push those costs onto clients and customers. But how do you do this whilst being price-sensitive and remaining competitive?
Instead of making extensive increases across the board and consequently losing customer trust, companies can tailor their prices according to customer and type of product.
By harnessing dynamic business data, you can segment customers based on their cost sensitivity and profitability and make thoughtful price increases for consumers who can absorb them.
Remember you will need to stay competitive in the market, so where possible, consider the elasticity of demand and pass on price changes in both directions accordingly.
3. Make the most of your cash reserves
It’s likely that companies will hold cash reserves as a safety cushion whatever the circumstances. It’s generally a good idea for businesses to always keep healthy cash reserves, even during periods of high inflation.
But if you’re leaving your reserves to languish in low-paying accounts earning mere pennies in interest, its value will erode. The target inflation rate for the Bank of England is 2%, so earning less interest than this, even in ordinary circumstances, will reduce your purchasing power significantly over time.
Inactive cash in high-street accounts can be expensive for your business.
Consider working out what you can lock away with higher interest rates to grow your interest income and take advantage of more generous rates across the board.
See how Flagstone can make depositing business cash reserves seamless
4. Prioritise high-profit-margin products
Businesses that pursue non-pricing levers in addition to cost changes are more likely to benefit in times of high inflation. And if price hikes aren’t viable at all, prioritising the most profitable products can be an alternative.
Many companies prioritise based on their order dates, regardless of profit margin. But this approach can have unintended consequences, especially in the early periods of high inflation. If possible, extend the lead time for low-profit-margin items and push other products that can be shipped quicker.
For B2B tech services, prioritise the most valuable leads first. Negotiating a ‘more-for-more’ arrangement or locking in a mutual benefit for the business and customer can also effectively hedge margins on both sides of the equation.
5. Invest in digital
A finance leader’s instinctive reaction to inflation may be to cut back on costs and pause spending. Yet investing in the right technology can reduce the cost of business, allowing you to charge your customers less and stay competitive.
When the labour market is competitive, best-in-class companies might accelerate their focus on automation and digital solutions to streamline processes.
Technology can not only increase the productivity of the finance function and lower labour costs, but it can also improve business insights. Better data leads to better decisions, and better decisions often lead to growth.
6. Leverage inflation to close deals
When inflation is anticipated, consumers might spend their money early while prices are lower or stockpile products. So, acting quickly on your pipeline could see your business accelerate sales.
Continuing to focus on your business’s core USP is essential during times of inflation. If the quality of the product or service you deliver meets expectations, price sensitivity can fade.
Curb the impact of inflation with proactive growth strategies
Improving your business cash position is a good way to tame the impact of inflation, take advantage of higher interest rates, and continue your journey towards increased growth.
But it can be difficult to know what to do with business cash when high inflation risks eroding its value.
Time-poor CFOs and Finance Directors can use straightforward platforms that help them scale high interest paid on cash deposits.
That’s where Flagstone comes in.
Grow the value of cash deposits despite inflation with Flagstone
Flagstone provides your finance function with access to over 40+ banks, more than any other savings platform.
Discover exclusive rates that grow your cash reserves with interest to outpace inflation.
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