This is my daughter's closet. We have a large armoire in there because the room is on the small side and we needed extra space for clothes that a toddler could reach. Which left little hanging room for dresses, which were on the floor in a wicker basket before.
I could have spend hundreds of dollars buying a new closet system. Instead I purchased a $10 tie rack from The Container Store and hung it on the wall for the dresses. Here's the after:
So be creative with your space. Ask yourself:
1. What's working? Don't change it!
2. What's not working? Find a solution that does!