Now let’s talk about specifics on how to organize that small space.
Step 1 – remove anything from your closet that you can’t wear now. This includes things that don’t fit, things that aren’t seasonal and sentimental things (like formalwear). These items need to find a new home. Maybe a secondary close or in a storage bin under you bed (check Target or Bed Bath and Beyond for storage options).
Step 2 – remove anything from your closet that isn’t a piece of clothing. Many of us use our wardrobes for storage of LOTS of things other than clothes. Other ‘stuff’ creates clutter that will make it hard for you to really see what your outfit options are.
This will keep things neatly organized and easy to find. I suggest slim hangers (because you can fit more of them in a small space). I like these: http://www.bedbathandbeyond.com/product.asp?SKU=3241840 or these: http://www.bedbathandbeyond.com/product.asp?SKU=123267. For pants, an idea is to purchase clips and use the same hangers for your pants as you do for shirts. I like these clips, they work very well with the other hangers I suggested: http://www.bedbathandbeyond.com/product.asp?SKU=123367