Needless to say there was quite a bit to be done for a family of six to function in this closet. I definitely needed a place for coats, shoes, backpacks, hats, gloves, and purses, plus other items. I also didn't want to spend a lot of money. The final product which took about an hour to make-over and cost $6 is seen below.
I purchased the white hanging organizer from IKEA for $5.99. This will be where we store hats, gloves, and scarves. We also took the top shelf off and placed it on the bottom of the closet to store backpacks. Under the shelf we used 4 crates (one for each kid) to hold shoes, and any other items specific to a child. We replaced the metal lip piece that was attached to the shelf with dowel rod (which was taken out of an old window treatment and sitting in our basement). Finally, we installed hooks for younger kids to hang coats as well as one on the side wall for me to hang my purse. All in all, I think it turned out pretty good. We also decided that if we like hanging cubbies we could add something more permanent later. Hope you enjoyed my mini-makeover.