The space we are remodeling is about 240 sq ft. Here is a pic of our favorite design. A neighbor friend up the street does lots of remodeling of his rental homes. He and his partner own a number of rental properties around town. They are known for their small, cute properties with really unique design upgrades. He offered to mock up some designs for us and since we've never done this before we were very happy to pay for his services.
We thought it was wonderfully creative, but due to some practical complications we won't be able to go with it. Turns out according to city code the electrical panel cannot be in a bathroom or laundry room. Makes sense. Although we could move the panel we decided it wasn't worth the money.
This design gave us some great ideas and the one we are going with is very similar. This upfront process was a wonderful way to think through alternatives and assess (re-assess) our priorities.
NOTE: The space at the bottom on the drawing is the kitchen and the top of the drawing is the new guest room.