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Problem #1: Clutter Control. Even large living rooms won't look beautiful with a lot of clutter, and small spaces easily become overwhelmed by too much stuff. Owners of small homes have to be especially diligent about clutter control. Solutions: Small spaces are usually short on storage. When decorating a small living room, adding hidden storage and areas is a necessity. Maximize space under coffee and end tables. Even small nooks can become a place for wall shelves. Consider a section of faux built-ins. Wardrobes, closet storage systems, and even stock kitchen cabinets are an affordable way to add a custom look at a budget price. But be careful – storage containers and cabinets can quickly fill up a small space, leaving you right back where you started. I know you love your stuff, but no matter how organized you are, sometimes there's just not enough space to put everything. If so, it may be time to take a long, hard look at your room and remove anything that is unessential, is getting in your way or just doesn't work.
If you have quite a big living room or an open plan dining and living room, you can use the pathway to separate the different functional areas of the room. The focal point of a room should be suited to the room's function. Create too many focal points and your living room will feel visually cluttered or confusing. Arrange your furniture around the focal centre of the room (which doesn't necessarily have to be the literal centre of the room). I've reluctantly included a black marker for television placement in the living room floor plan diagrams below, as the television is typically the focal point of most living rooms today. To quote Joey from Friends, “You don't have a TV? What's all your furniture pointed at?”. But if you don't have a TV, (good for you!) you can replace this with a console table or artwork or whatever you like really to act as an anchor for the rest of the room. Even better if you have a fireplace that would make a great focal point for your living room.

Excerpt from Extra Large Bean Bag Chairs :

Side Tables - Side tables tend to be an afterthought but they're actually very important. The number you need will depend on how much seating you have. Everyone should be able to comfortably set down a drink without having to get up and walk over to a table. Try to have one on either side of the sofa (unless there isn't enough space – in this case people can use the coffee table), and between pairs of chairs. The key is to have enough surface space without overcrowding the room. The tables should be approximately the same height as the arm of the chair or sofa they're next to. From family game nights to book club gatherings, the living room is a social hub. The proper placement of the room's furniture goes a long way toward making the space feel welcoming.