One design tip that I have really tried to pay attention to in my new apartment is the importance of texture.  Adding and mixing up textures is a great way to add interest in a small space. In fact, I almost think it helps re-direct the mind away from how small a space is to how interesting the space is.

My shag rug has a border of butterfly shapes cut out of wool felt in the same color of beige and I love pairing it with my wool striped rug underneath.

My plain white walls in the bedroom get an added dimension of texture with the paper cut-out designs from Tord Boontje. (Until Dawn curtain available at modernpoverty.com)