First thing take all of the pictures down, they are too small and not hung in any sort of pattern, leave them until the end of this job and concentrate on furniture first. I like the sofa it is nice shade of blue and I love blue and white color schemes, I would get a couple of white slipper chairs with some great pillows , maybe an oriental rug and some striped simple drapes and a large painting on that wall with all the little pictures a nice simple bent glass coffee table to start. You will need lighting and end tables but I would start with these things and then it will be easier to make those decisions.