How do I maximize usage and storage for small closets?

I like using photo boxes to organize smaller items, label the outside and stack them on the floor or on the shelf. Then as you are organizing, purge the items you no longer use.

Double up your hanging rack - Add shelves - Boxes - back of door storage...

http://www.hometalk.com/diy/entryway/entryway-closets/entrance-closet-organization-29314748

We put a coat rack and bench for taking off winter boots, hats, coats, and gloves at our entrance way. Hope this helps. See the photo

Janet's link is a great one. I put an over-the-door shoe rack on mine which doubled up for shoes, scarves (rolled up), glasses, gloves, hats and so much more!!

i put a storage cube shelving unit in mine. Kind of like pre-k cubbies where everyone had a row for boots, hats and gloves etc yet you could still hang stuff up. Very simple and inexpensive too

Raise the bar shelf to the highest height that you can reach up to hang a hanger. This will reduce the height of the upper shelf, which is very hard to access anyway, and reduce the stuff always falling down off the shelf to a more mangeable single height for flat only objects only.

When remounting this upper bar shelf, put it as far back as it can go. Having the hang up bar farther back might give you a few more inches on the insides of the walls on either side of the door for hanging up purse straps on hooks.

Then with you newly found space at the bottom of the closet, install another solid surface (not wire) shelf. The bottom shelf is for shoes. Flat trays or flat baskets could slide under this footwear shelf for small items such as gloves.

If you live in a part of the country where it is cold in the winter and different family members are constantly opening and closing the closet door, for the coldest months, you might consider removing the closet door all together. Some people might feel that they could not live with looking at the closet contents all the time, but it would make access much easier.