No matter what size your closet is, you'll discover a lot more space when you get it organised. Organizing your small closet is kind of like one giant game of Tetris, but losing just means you have to store an extra bundle of clothes under your bed. Here are the steps to follow to get your small closet in shape.
Two words for you: storage boxes
Separating your items--think scarves in one, socks in another--into individual boxes will help you maximize shelf space and will keep everything easily accessible and thoughtfully organized.
Swap out your bulky hangers for thin hangers
With a small closet, you're going to want to fit as much in there as possible, so don't give any of that precious limited space over to wide, clunky hangers. Thin hangers will help you maximise the clothes-storing space available to you.
Set up a clothing rack somewhere in your room
Say you have some pretty dresses (they could be formal gowns, they could be linen summer maxis, what have you) that you don't wear all too often. They could live outside your closet on a portable clothing rack as a sort of decor element -- functional and cute!
Give your purses a proper home
Step 1: take all the purses you have hanging on your closet doorknob off your poor closet doorknob. Step 2: buy yourself a mod wire basket and store your purses vertically (nope, not in a pile). This will keep them compact and make flipping through 'em a breeze.