It is always a good idea to stick with light colors and fabrics to give the room a light open feel. Make use of height space with cabinets. Tall cabinets will give the illusion of space while providing much needed storage.
If you lack counter space you may want to invest in a kitchen island. I love the below island because it's mobile and offers out-of-the-way storage. There is a place for spices, paper towels, cutting board, and anything else a top chef will need;)
Another option if you are really cramped on space is the oak kitchen cart pictured below. It is smaller in width yet still gives you some extra cooking and storage space.
This particular model also offers a flip-open top as well as a pull-out tray which will really come in handy while preparing food.
If you are seriously lacking in storage you may want to consider a pot rack. I think pot racks are great because pots tend to take up so much space and they are never easily accessible. Racks take care of the space problem while giving you easy access to your pots.
A friend of mine has tiny galley kitchen. Not only is it absolutely adorable, but it's highly functional. When decorating any small area the key is to make good use of the space.
