Functional as well as decorative. A great idea, especially when working with a small space is to select items that make great features yet also serve a purpose. For instance, chaise lounge chairs are great not only as lounges but they also double as a place to put your feet up and provide extra seating when you are entertaining guests.
This is not to say that all items need to be made in the same period, have the same texture or be of the same color, but instead that you should stick with a few themes and make sure that one or two are reflected in each and every piece of furniture that you have in your living room.
When coming with design ideas for your living room, you just have to consider the brightness. A living room should be bright and have all the happy and bright colors visible. A bright room will not only attract members of the family, but it will also provide a memorable experience for whoever pays you a visit. A bright room will set the tone and mood for anything taking place, and you can also spice that up by adding some bright colored flowers, curtains and furniture that will suit it. In your design ideas, try as much to do away with dark and dull colors.