Here's another great example of what can happen when you don't have a closet. You create something like this Billy bookshelf/closet like Rachel of Smile and Wave did. Add some rods and hooks, and consider covering the back with your favorite wallpaper, print, or woodgrain contact paper to get the look shown here.
Rachel Denbow recently shared the updated room of Ruby and Sebastian. We shared this room back at the close of 2009 and it's undergone quite a few changes since then.
There are a ton of endearing corners in this room, so head over to Smile and Wave to see the complete room and all of the details.
(Image: Rachel Denbow)