Defining a small or large garden is subjective. However, most gardens, certainly in British metropolitan areas, are usually the same width as the house i.e. 5 metres to 8 metres wide and sometimes a little bit longer in their length. What I tend to consider first is how aesthetics compliment the garden's function and purpose and vice versa. Within the framework of a small space this can prove the most challenging for the garden designer - especially if the garden will be utilized by a family unit and not just a couple or individual person. Larger gardens allow physical room for change. As the garden grows its form evolves. With smaller gardens, if left unattended, the result would be clutter, confusion, and carelessness. Your approach and attitude to using limited space is the key to a beautiful and functional garden.
Once you have established your budget start with thinking about the garden's features and what you would like it to include. What would you like to see each day in your garden? In small scale gardens you can still create an air of mystery. Ideally you don't really want to reveal everything in your garden at once. You want to encourage visitors to see where paths may be leading. Most metropolitan and suburban terraces have a side lane within their yard separating them and their neighbour. A small garden that moves in that direction makes a small space seem larger and slows the journey as you wonder around.
Include subtle focal points for visitors to focus on. This draws attention away from feeling you're in a small garden space not to mention adding to the mood of the garden. Focal points can be a sculpture or water feature, basically anything interesting that can make someone stop and observe. This will give the effect of your garden appearing larger. But do use sparingly. And if you do decide on incorporating a water feature choose one that is not splashy or sounds splashy. It may soon annoy you - not to mention your neighbours as well.