take that awesome painting down from over the bar, and put it on that wall. put the couch centered to that wall. and the tv. put the table under the light by the closet. or pull it back toward the corner. start there. add an area rug and some chairs. start there.

I don't think the drapes do much. I would change them for thicker ones with some texture and pattern, perhaps picking up the color of the parquet floors.

Angling the couch makes it look like you want it to be one room.....placing it on the wall like flair suggested will start the division. Try a side table on that side of the couch, too, for another visual separation. A rug would go a long way with helping, too.

Just noticed the floor lamp....that will also work to the left of the couch if you put the couch on the wall. And oh, my, yes....please try the art you already have behind the couch. AMAZING!!!

I think the key to designing an amazing small focus is to actually not focus on the fact that it is small. Great your dream space. Incorporate all the things you love then devise a plan to make them work with the space you have.

I have an amazing blog post that I think may help.

http://timothyriversinteriors.com/2015/01/19/decorating-a-small-apartment/