How can I deal with a small laundry room?
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Its all about putting in as few actual peieces of furniture as possible in order to maximize space. You don't need to comprimise on storage, you just need to get creative- I'm a big fan of floating shelves in a laundry room- on the wall itself and over your machines. You can also hang a tension rod across the room to hang your laundry across your space without having to use up prime real estate. Color choice of the room will also make a big difference in how you feel about the size of the space, light and bright will open up the room.
Have fun with it, good luck!!
Here are some more ideas to give you inspiration: http://www.hometalk.com/b/7027074/small-laundry-room-solutions
https://www.pinterest.com/organizedbliss/laundry-room-organizing-ideas/
Making use of every inch of space- here's some ideas:
Laundry sorter.
http://kirstenerickson.blogspot.com/2013/02/our-laundry-closet-makeover.html?m=1
They don't get much smaller than mine but installing overhead cabinets solved that problem .