i love the seat - don't change it.

I have a similar style sofa and my two recommendations are to get yourself something to put your feet up on (if it doubles as storage even better) and to buy a couple of pillows to cushion the arms if you like to sit on an angle. The arms on my sofa would start to dig into my back until I bought a couple of large, inexpensive IKEA pillows to jam between me and the arm. The color & condition of the sofa look nice! A large painting behind the sofa would be visually appealing, but I imagine that will come in time.

adorable throw pillows will do the trick

Maybe a couple of throw pillows?

Hows this for off-beat. How bout going to the auto section of your local dept. store and see what kind of seat covers they carry for "bench seats". The sofa looks about the right size and the covers are very strechy. No huge commitment and it comes off easy for washing. They come in so many flavors these days. Have some fun.

I like the colors of the loveseat. I have a suggestion about furniture placement, although I probably don't have a realistic idea of the space in the room. If you rotate the bed, can you also rotate the loveseat, so that it faces the door?Put a console between the bed and the back of the couch - it can be used also as a night stand for the bed with a lamp on it, etc. You should have room for a small coffee table or padded ottoman - something for your feet and also as a flat surface for a drink. Soft pillows for the couch, a great rug for the "living area" (FLOR tiles?). You might even have room for a small chair to make a conversation area with your loveseat.

Paint the wall behind the bed a contrasting color.

Holy cow it's so tiny! Adorable.

I would like to see a couple of luxe looking throw pillows.

A friend of mine uses a stack of floor pillows with a tray on top as a coffee table. I think this would work well for you too. Extra seating when needed, and a place to rest your tootsies.

cute mirrors (NOT 70s porn hotel mirrors) will help magnify the space. little plants (the union square greenmarket has some super cute TINY cacti for like $2 each), and throw pillows, yes, throw pillows!

Can you paint the walls? Because I agree with Doris. I like the loveseat as is (it's quirky) but right now it looks like it's melting in with everything else. We need to break up the color scheme that's going on in here.

Another vote for painting the walls if you're going to keep the loveseat that color.

I like it a lot, but if you only have 380sq. ft., wouldn't it be better to buy a futon and get rid of the bed and couch?

I agree with MichaelF. With only one small space, it may just feel better if you have a day look and a night look. This could easily be accomplished with a futon or a couch/bed. Then you could play around more with the arrangement of things. This is a cute space....I think you'll figure out something cool to do with it.

Thanks so much for the comments everyone. I actually have 2 other rooms. Don't ask how it's all only 380 sq feet. I have a kitchen with a table for 4 and a crate and barrel leaning wall shelf and desk in the hallway plus a full size bathroom (great W layout of apartment). So I'd like to keep the Queen size bed because I got it dirt cheap when Levitz closed there doors, it's so much more comfortable than a futon and it's got storage underneath. It's the Ikea Sultan bed. http://www.ikea.com/us/en/catalog/products/10098893 An additional piece is definitely an option, one piece at a time due to the budget. I like the idea of painting the wall. I don't know if the room will start to look too small? My other rooms are painted and look great, I think I got lazy with the bedroom.

paint, mirrors, and throw pillows all sound good. maybe even the auto seat covers!? another thing that could soften up the sofa, if that's a goal, is to get some long strips of fabric and tightly wrap it around the metal armrests, and maybe the legs too. just a thought.

Some great ideas there. My flat is also tiny-286sq feet, and EVERYTHING has to work hard. I suggest some boxes under the loveseat for extra storage, someone else suggested a footstool that is also storage, some shelving just below the ceiling for the stuff that you use infrequently- Christmas decorations, that sort of thing. Keep an eye on your colour scheme- it doesn't have to be all one colour, but keep it the same depth of colour, if you see what I mean. I have a green living room, a pink bedroom, and a yellow hall, but because they all have the same depth of colour, they flow into each other nicely, but to stop things looking too bland, I have a couple of accents of bright colour- a bright pink elephant shaped watering can for example. Have fun!

Congrats on good buy!
PAINT the apartment in a light color that will make the couch pop (and will also make white bed linens look good). Right now, there's just too much white - and clutter.
Also, it would be a really good idea to invest in a Murphy bed.
GOOD LUCK!

I agree with magicsbm. Rotate the bed as you planned and then rotate the loveseat too - with a console between them (or even a low sitting dresser). I would think you could add a small storage ottoman between that and where you plan to sit the television.

I'd get some kind of slipcover for the loveseat that hangs down close to the floor - then you can add some boxes under for more storage. A throw pillow or two would complete the look of the loveseat. A nice rug in the living area and maybe another in the sleeping area would make the spaces feel a little more defined.

I doubt it's possible, but too bad your bed can't fit in the area you have the desk - it's much easier to make a living room/office look polished than a living room/bedroom.

I wouldn't paint the walls anything dark since the room is so small. If u must paint choose a cool/muted color scheme. Highlight with warm accessories. I agree with the comments re: throw pillows. Warm throw on the bed as well and a painting behind the sofa/bench could work well in this space.