Small backyards work a lot better once you stop treating the size as the problem.

Zoning is the main thing -- even 200 sq ft reads bigger when there's a seating surface and a planting border doing different jobs. All one thing (pure lawn, pure patio) usually makes it feel flatter, not just different.

Surface choice matters. Flagstone is really well suited to tight spaces: works with irregular shapes, no edge restraints needed, and the joints hold low groundcover if you want green in the surface itself. We've done a lot of these in the GTA and wrote up a guide on it: https://home.renovation.reviews/t/flagstone-patios-and-walkways-ontario/47208 -- stone species, joint options, base depth for different soil types.

A low border wall along the fence (12-18 inches) adds more than it costs -- visual depth and a raised planting bed without giving up floor space.

And in tighter lots, screening at the boundary to 6 or 7 feet changes the feel of the whole space. Cedar panels, climbing plants, or both. Usually worth doing before the furniture goes in.

What shape is the yard, and how does the sun track across it? That makes the material and plant calls a lot easier.

I'd put the table and chairs in the lower right quadrant, the swing facing the lawn in the upper right quadrant and replace the lawn with garden. It looks like you might be in the UK, otherwise, tell us zone and nearest city.

How big is this project? Total transformation? There are lots of designs online for beautiful sleek modern yards.

I thought you meant design as in decor and plants, Here is a plan keeping your existing yard and furniture.

Move the bbq to make more garden space and move the furniture away from the edges of the patio to open things up.

Add other things, the screens, stepping stones, birdbath, ferns, planters, rugs, etc.

Using outdoor area rugs would minimize the cracked surface. Or new skimcoat surface.

Fine tune to your needs but this concept is easy DIY.

These designs are nice with both fire and water features to incorporate into your new space Adds so much depth and visual interest..

The OP never responded and just never made an appearance. Or they did not like the suggestions and simply clocked out without even a fare-thee-well.

We did our little backyard a couple summers back so i feel ya on the where do i even start?! thing

honestly the biggest thing for us was breaking it into lil zones instead of trying to make the whole thing do one job. carved out a small seating corner, kept a bit of green, and somehow it felt bigger even tho nothing actually got bigger lol

also if your patio surface is kinda rough an outdoor rug hides a lot. wasnt ready to redo the whole surface so the rug bought me a few more years to think about it

the other thing i didnt expect to love was adding some height along the fence. we put up a couple cedar screens and let a climber start going up them and it made the space feel like its own lil room instead of just a yard the neighbors can stare into

if you ever come back lol share the shape and which way the sun hits, ppl here can get real specific with that