How do I make furniture work in really small spaces?

[tammiflana]

Hello,
I've been living in my 400 sq. ft. studio for about three months now, and I'm still trying to figure out the furniture layout.
My biggest challenge has been finding a couch that doesn't completely dominate the space. I started with a standard sofa, but it made the apartment feel so cramped that it was hard to move around. I then switched to a futon, hoping it would save space, but it wasn't very comfortable and didn't make much of a difference. I've also looked at loveseats, but they still seem a bit too bulky.
Lately I've been considering vacuum-packed sofas from Alibaba or modular sectionals, but I'm not sure if they're actually good options for a small studio or if they'll end up taking up just as much room. Has anyone used either of these in a small apartment? Were they worth it?
Storage is my other big issue. My closet is tiny, so I need additional storage without turning the place into a wall of bins and shelving. I'm thinking about getting a storage ottoman so it can double as seating, which seems like a good use of space.
Ultimately, I'm trying to fit a comfortable couch, a small dining/work table, and enough storage into this apartment without making it feel like a storage unit. I'd love to hear what furniture or layout solutions have worked for others living in similarly small spaces.