Look on Pinterest for mini mudrooms. We have a small cost closet but never used it because it was behind the front door and also we're lazy. We had a coat rack but it always looked messy and it cluttered our already tight entryway, which was basically just part of our small living room. We had this awkward alcove next to the stairs and did something kind of like this:
http://iheartorganizing.blogspot.ca/2013/03/reader-space-mini-mudroom-makeover.html?m=1
We also bought an Ikea Expedit for keys, work bags and badges,, change, and baskets to catch shoes, mail, umbrellas, random junk. It looks a lot better. We'll probably have to lose the Expedit to sell the house, but it makes the space look less like a drop zone.
Word from the wise, real-life mudrooms never look like the pictures, because they don't have actual coats on the hooks!