Forget the traditional one hanging rod in the closet and your shoes lined-up along the floor. This set-up is not very accommodating and is rarely the right fit for any closet. Look at the type of clothing you own the most of, it could be pants or sweaters and decide what the ideal way to store those items are. If you own a lot of sweaters, hanging them is not recommended, install some shelving so your sweaters can be folded. You can purchase dividers to keep your sweater stacks from toppling over. If you have pants aplenty, install a second hanging rod and put all your pants together at eye-level or slightly below.
Shelving is a good idea even if you don't own a lot of sweaters. They are flexible and can be used for many things. Buy some inexpensive baskets or bins and use them to store your smaller items on top of the shelves? Handbags, hats, belts, watches. Hooks are another must have in any closet, you can use it to store your dry cleaning before you take it in, hang your bathrobe on, or pick out your outfit for the next day and hang it on the hook so you are ready to go.
Take some time to plan out your ideal closet before you get started and make your system work for you.