There is a company called Closetmaid that has module closet organizers that can help with this problem. You can pick and choose the various modules that will fit into the space alloted. This is a link for Closetmaid products: http://www.closetmaid.com/en-us/Ideas/Pages/room.aspx
The Container Store also has ways that you can use various containers to organize the closet neatly. These are some of the containers you can get: http://www.containerstore.com/shop/closet/newClosetStorageCollections
One of the best things I like to use are Space Bags. This is a review about the Vacuume storage bags: http://jentobey.com/vacuum-storage-bags/ These are bags that you can put multiple items in. They zip up and you vacuume out the air compressing items to make things fit neatly in the closet space. This works for winter clothes that may not be worn for the summer and you want to pack them away, and the same for summer clothes in the winter. It gives you the ability to pack things neatly and compact until you need to use them again. This is a link for Space Bags: https://www.spacebag.com/17/index.dtm?mid=563894
There are some other companies that do make something similar to space bags, which you see are carried at Walmart : http://www.walmart.com/ip/Spacemaker-Bag-Combo-Pack/5245001
I too have a small closet and have found these products very helpful in making more space and a nice organized closet.
I hope this helps to give you the space and organization you need. Joan