C.P.
I love walking through IKEA just to see how they have "rooms" set up. You don't need to buy their furniture but can get an idea of how to organize a small room. I really like the beds with drawers built in though they are too high up for a toddler. I would suggest a toddler bed for now, your second child will be able to use it as well in the future. I have a metal toddler bed (Cosco I think)with a half rail on it. It is the perfect size for kids 2-4 years old, not too high off the floor, but high enough to fit storage boxes/baskets underneath.
Small spaces look bigger with small furniture. My daughter's room is 9'x9' but with just a toddler bed, two book/toy shelves, and a clothing shelf the room still has a lot of play space.