Furnishing a Small Space

When furnishing a small space it doesn't mean you have to keep furniture sparse and be left with a sterile, cold room.  Rather, think scale, reflect, and "through." Let me explain.  
Photo by Tim Cuppett Architects - More contemporary living room ideas
In the photo above, the space is small but doesn't feel cramped, even with all of the furnishings.  A large mirror reflects light, and furniture has narrow legs allowing you to see through to the walls or floor of the room, or furniture is glass or mirrored.  You can even see through the lamp on the side table!.
Scale: Don't get the mammoth sectional for your cozy living room.  Get a settee or a smaller sofa with narrow arms and petite legs that take up less visual and physical space.
Reflect:  Don't neglect or waste the natural light in the room.  Place a beautiful mirror on the opposite wall of your light source, and/or get mirrored or metallic furniture and decor with reflective properties.
Through:  Find furnishings and/or decor you can literally see through.  This means furnishings with narrow legs, backless bookcases, and glass or lucite tables.
This room features a settee instead of a sofa, an armless chair, two small tables instead of a coffee table, a mirror, and a bench with narrow legs.

2 images above via Little Green Notebook

Lucite is great for small spaces via Domino
Below are examples of pieces that would help keep a small room looking open and inviting:
 An open back and delicate frame keep this bookcase functional but visually unobtrusive.
Get it here.
 Another example of furniture you can see through. Get it here.
Lucite and metal chair found here.
Hair pin legs and a low profile make this coffee table stylish and light.
Get it here.
I'm a sucker for unique mirrors like this one found here.