Analyze the space you have available. You may have a small enclave that you want to allocate to closet space, or it may be space along a bedroom wall. The area may have limited head room or there might be a window in the way. Have a look at what space is available.
Draw a simple diagram featuring the shelves, units or cupboards that could be used in the space you have available. Decide how you want your closet space to look, too. Place any shelves you would like onto the diagram, add in some hanging space, shoe racks if needed, and some small spaces to house wicker baskets or containers.
Measure the space you have available for each shelf, unit, basket or hanging space and mark the measurements on the diagram.
Visit a large store such as Ikea that will have a good selection of matching shelving, storage units and racks available. Using the diagram and the measurements for the space you have, purchase closet organizers that will fit well.
Install the closet organizers in the space you have allocated and dress the shelves as you want them to look. Place clothes in the hanging areas, books on the shelves and toys in the baskets.
Attach a curtain pole across the space and hang a drape that matches the rest of the room's interior, if you want to hide away your new closet. Alternatively, window blinds can be effective closet doors; hang them above the closet space.