Here are a couple of quick and inexpensive tips for getting your baby's room organized.
A great way to add space to a closet, especially if you have children sharing a room, is to buy a
tension bar (they are typically used as shower rods and can be found at Canadian Tire, Zellers, Walmart) and install it (tightly!) about 3 feet off the ground.
This gives you extra hanging space for those teeny-tiny baby clothes.
Another baby space tip, is to utilize one of those over the door shoe organizers, like this one:

Throw it over whatever door you have handy - whether it be the closet door or the door to the room and fill it will those little baby essentials that seem to get scattered about.
It's great for all those little toys, rattles, soothers, and even things like baby cream and baby powder (especially once those little ones are cruising - if you have experience a little one getting into a vat of vaseline or a large bottle of baby powder, you know what I'm talking about!)