Just a little inspiration for small spaces. Just because it's small doesn't mean it has to feel cramped.
Consider letting your space serve multiple purposes subtly. Instead of a couch, use a day bed with lots of throw pillows. It will be just as comfy for reading or chatting with friends, but will provide one more place to sleep for guests. The non traditional style of this one helps it not look so bed-y.
Murphy beds remind me of staying in the Wilderness Lodge at Disney. But this updated version provides style with a solution to limited play space in a child's room. Children are often given the smallest bedroom, but they need to be able to spread out. If you don't have a playroom or want your whole house to look like a toy store, kids toys can still be kept and played with in their small room with this solution.
Now this is a seriously small bedroom. Probably in a New York Apartment. This room still fits a queen sized bed, even though I am sure it wasn't built for one. Turning the bed long on the wall (like a giant day bed) can allow some rooms to fit a bed that otherwise would not have worked. Using shelves in this space provides storage and display opportunities at the same time.
I have had this room pinned for a long time because it shares a similar palate as my room. I had not even thought about how small this room is until today because it is SO stylish your first thought is not about size.The bold, but simple patterns and almost monochromatic color scheme make this room seem larger. The fabulous light fixture also draws your eye up, so you aren't focusing on the limited floor space.