We all love to maximize our small spaces. A tiny room can serve many purposes, with the right layout, scale, the function of the pieces you use, and a bit of creativity.
For example, a living room does not need a sofa against the wall. Try placing your seating in the center - maybe a chaise or two instead - and use furnishings that do many things. A desk/dining table will serve a small space for computer work, bill pay and office functions, and for eating and gathering, as a serving and dining table. Bookshelves can be configured to store as well as display, and even conceal a flat screen TV and audio equipment.
In small living spaces, raising your furniture up, gives space underneath for storage.
Bedrooms with bunk systems are great for children who need space for entertaining and homework. For teens, beds on platforms create a second level for sleeping, and a desk, toy storage and even a lounge area can be worked in underneath. Dividing a small room without a closet with a book/shelf unit can create a headboard, walk-in closet, wall space for art, and niches for books or display. Raising a mattress onto a platform with drawer storage can eliminate the need for dressers.
Small apartments with single wall kitchens can be transformed with a single unit that includes a tall standing cabinet, a flat surface for a table, and upper cabinets, all joined into a self-standing rectangle. The end result is a divider, cabinets, a table/desk, and a place under the table for seating, the garbage can and the cat bed! Using wall-to-ceiling cabinets makes a small kitchen space look larger. Adding glass to cabinet doors makes them feel less imposing.