Even though it's absolutely TINY, it really lives well! With two adults (both working from home full-time, no less) and three dogs, we prioritized maintaining zones of privacy and maximizing storage. I really love how the small size makes it always feel warm and intimate, but the smart division of space keeps it from feeling claustrophobic.
Three of My Best Tips and Tricks for Creating a Successful Small Space::
Have lots of closed storage. Nothing makes a small space feel smaller than a ton of visual clutter. We had an entire wall of built-ins installed for just that reason.
Go vertical. If you have the room, consider stacking functions. Even with a ceiling height of only about 8 feet, we managed to create separate spaces for living, sleeping, work, and laundry all by building a permanent loft for our queen size bed.
Don't forget about privacy, especially if you're sharing your small home with others. Our biggest success was ensuring there were still defined spaces in the otherwise small home. That way we could each feel we had space to ourselves even when we were mere feet apart.