Another peg board idea: For inconspicuous storage, hang a piece of pegboard on the inside of a closet door to organize your craft supplies. Add a bar to store ribbon and small baskets to hold rulers, scissors, and marking tools.
9 Craft Room Makeover Ideas by Real Simple. I've been thinking of ways to organize my art & craft stuff to better fit the small space I have and I may have to use a few ideas from here. And gorgeous colour!