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Think of a lovely hotel lobby – how the furniture is arranged in groupings that invite conversation. When you place the furniture in your living room, aim for a similar sense of balance and intimacy. A conversation area that has a U-shape, with a sofa and two chairs facing each other at each end of the coffee table, or an H-shape, with a sofa directly across from two chairs and a coffee table in the middle, is ideal. One common mistake to avoid: Pushing all the furniture against the walls. People do that because they think it will make their room look bigger, but in reality, floating the furniture away from the walls makes the room feel larger.