I would recommend keeping your bed as close to the closet as you can while still allowing access to it and putting the dining table and loveseat/couch on the half of the room near the windows. That way you can use the balcony to entertain without having people crawl over your bed to get there. Perhaps place the desk in between the bed and "living area" to give some separation. Or, consider losing the desk and getting a laptop stand or using your table as a desk when you don't have guests over.

As for color, more information is needed - what are the floors like? What direction does your window face? What is your view like?

Here is a link to a studio with a room divider shelf. I considered this layout when looking at similar apartments.
http://community.apartmenttherapy.com/contests/smallcool/2011/entries/929

I'd keep the paint color light (perhaps light gray).

I would suggest looking at pictures of stylish hotel suites for examples on how to utilize the space. Hotels are, by necessity, incredibly efficient about space and the suites or junior suites of a nice hotel are expected to accommodate guests and entertaining as well as sleeping. In Los Angeles we have a company called Hotel Surplus Outlet where you can essentially purchase a very nice hotel suite of furniture in pieces or by the room (recently they had the Kelly Wearstler's furnishings from the Avalon Beverly Hills and Maison 140 and the posh digs from the Peninsula Beverly Hills available for sale). Everything is scaled in such a way as to be very space efficient and coordinated. Given all of the nice hotels you have in Manhattan, I would imagine you have something similar there.

I'd give some serious thought to a large Ikea expedit unit - or two - to separate your sleeping/closet area from the living area (the second could create a hallway between the kitchen and the living area). Would give you tons of storage and display space, and a little privacy between you and a guest.

I love making a small space work and I think you can definitely make this space work with what you already own.

First of all I agree with emcc that your bed should be kept close to the closet. Have the foot of your bed face the closet with enough space to walk through. I don't know what sort of headboard you have for the bed but whatever it is put your desk up against it so your headboard can double as a desk wall/divider. Your desk can also serve as a dressing table with the right storage.

Instead of having a dedicated dining or sitting area, use your small loveseat as luxurious seating for your dining table and centre it near your balcony.

This should leave enough space near the patio light filled area to paint :)

Where you can, make areas multifunctional - you'll end up with more free space that way.

i have a similar floorplan. this is my apartment from this past small cool contest..

http://community.apartmenttherapy.com/contests/smallcool/2011/entries/1844

i opted to not have dividers as it really makes the space smaller. my place is 12 x 19.5 and i pretty much just fit everything i needed!

good luck!!

I agree with other commenters that the bed should be kept close to the closet... though I was picturing it with the headboard against the wall. Depending on the size of your computer desk, you can always use it as a bedside table.

I'm not sure you need to do a room divider. That's up to you. I've thought about how I'd do it with our stuff in a studio, and I'd probably use our Ikea expedit entertainment center for division. I'd paint the back or hang artwork there.

Your entertaining space could be like my grandma's dining room from when I was little: couch, TV, dining table. She was able to fit everything into a relatively small area.

I suggest really thinking about how you entertain and the placement of your living room vs. bed area. On one hand it would be nice to have your bed near your closet, but on another you may want your living area closer to your kitchen if you plan to entertain (and cook) a lot. My experience says having a bedroom too close to the kitchen makes your bedroom smell like the kitchen, and though guests will use the balcony, most people gravitate to the living room and kitchen.

Best of luck! Hope AT posts the final design :D

Also, YOU are the one living in the space, so YOU should be the one enjoying the balcony and all the light it brings in, so I would have my bed near the windows for bright and sunny weekend mornings when you stay in bed for hours :D

I would suggest loosing the computer table. while I always love my desk, the fact that I work on my kitchen counter and coffee table more than the desk tells me it's not necessary. -think about it. you could use the dining table as dining+computer table.(assuming you are using a laptop.

I'm also a tiny studio dweller and have found that room dividers often end up making the space look cramped. If you do use one, get something low that can double as a bedside table or console table. Use a rug to demarcate the living area. I would also second surfus in suggesting you think about ditching the desk. It seemed unthinkable to me--I work at home often and have always had a large desk--but in such a small place, do you really need two big horizontal surfaces? I use a kitchen table and then have a small cabinet tucked away for all the things I'd normally have kept on my desk. Good luck!

This is just a personal opinion, but I think the best studios are the ones set up like a luxury hotel room.

This isn't a space you should divide or even concern yourself with overnight guests - This is only the size of a large bedroom or a moderate hotel room.

Have a look at this year's HGTV Urban Oasis Bedroom - That's how you should set up this room, with a bed & nightstands by the closet and a loveseat & droplid desk at the windows - and a nice cafe table & two chairs on the balcony as your eating area (which you could pull indoors at the loveseat for intimate indoor dinners as well)

http://www.hgtv.com/urban-oasis/index.html

how fun! I am moving out of a similar sized studio this weekend, you'll love it!
I agree with the posters above about keeping the bed next to the closet. I would position the bed parallel to the closet with the foot of the bed along the wall so the headboard creates a "hallway" into the living room. I separated further by adding a small expedit unit to the side of my bed working as nightstand/ room divider. I then added 3 tall vases with those tall colored sticks from cb2 in each to create feeling of separation without physically blocking it off. as for paint I used a grayish blue but only on one wall. I also got rid of my desk and worked mostly on my coffee table (laptop). you mention having a small dining table, if you can I would put that out on the patio and create dining space out there leaving room for either the desk or other workspace inside. Good luck! would love to hear an update!

I just moved into a studio that's almost the same size/shape. I used my couch as a room divider and put if perpendicular to one of the long walls. (There's and Expedit behind it, but you wouldn't have to do that. If you do, I'm glad I got the 4x4 instead of the 5x5.) The I put the head board of the bed along the same long wall. I put the desk on the other long wall at the food of the bed. My table is on that same wall opposite the end of the couch. It works out that one end of the apartment is for living/eating, and one end is for sleeping/working. I'm jealous of your balcony! Good luck!

I'm on board with the folks that are against room dividers. I think they make the room look cramped and the best thing about a studio is the openess. I'd suggest using rugs and/or tall stacked bookcases like they have at DWR or CB2 to demarcate spaces that are used for different purposes. It will make it a much more pleasant space to live in.

A small studio with no divider that looks really put together, with a lovely calm color scheme:
http://www.roomzaar.com/rate-my-space/Living-Rooms/My-New-NYC-Studio/detail.esi?oid=23617146

Something 4' tall can serve as a room divider but still leave the space feeling open. You can't see over it when seated.

A table and chairs in front of the balcony would be lovely, especially to hang out in the morning - and maybe to use as a desk at oher times.

I've seem the luxury hotel room style done very well, but you need to really know how to set up zones within a room and decorate accordingly.

Paint colors depend upon the natural light, whether you want cool or warm colors, etc. Consider an accent wall.

Enjoy!

You could try it this way: put your dining table by the closets, parallel to them. Your living area could be in the next 'sector' up, with the couch on the west wall, or in a bit, to create a 'hallway' up to the top bedroom area, and the tv unit/or desk, if you want to keep it (I would personally ditch it and use the table, with perhaps a small rollaway cabinet to go in the bottom of the closet with all those office supplies) on the East wall. Put a rug in this area to define it, with a standing lamp and small sidetables for the couch. The Expedit type unit can come out from the East wall at right angles above this area, leaving room for your bed to run parallel on the other side of the unit, with walking space on either side. This gives you the sun and enjoyment of the balcony, and if need be you could put a narrow tall bookcase in line with the unit on the West wall and pop a portable hanging rail or low chest of draws behind this for storage. Just a few thoughts, please let us know what you go with.

If you're single I'd first get rid of the queen size bed and go with a full or even twin to give you more space to work with. I also think the suggestions made about looking at hotel suite's layouts are a great way to get good ideas.

I also have a studio, except mine is all windows and balcony down the long wall. I like natural light and I detest tiny rooms, so no divider. Here are some tricks you can use: If the flooring color is relatively light, match the walls to that as precisely as you can. It will make the walls recede even further. Don't use a regular bed - get a queen-size murphy bed instead. The cabinetry can include storage space and be any finish you like. Doors can also be mirrored to give even more light and space. Install this on the kitchen side - you don't want anyone who comes to the door walking right into your bedroom! Mount your flatscreen where you can see it easily from bed or the sofa. Go with a sleeper for guests. They won't stay long, but you'll want to make them comfortable. A cast aluminum bistro table and chairs will withstand the elements on the balcony perfectly, and also work indoors. Place the sofa inward from the long wall so that there is room for your desk behind it - that way, you can see the tube while sitting or working. Storage ottomans will give you more seating and places for stuff. The only other thing I would suggest is that either your bistro table be large-ish if there is room on the balcony, or else consider concealing a larger fold-down table behind some artwork. You'll be wanting more workspace, definitely! And maybe you can paint 'anywhere'...but doing art is a messy proposition and it needs space. Consider floating ledge shelves for the long wall on the kitchen side for allowing work to dry or be displayed. Believe me - there's this huge temptation to do large pieces when that big blank wall is staring you down, but you'll want to do more and you'll need the space for it all!