First you need to figure out how much stuff you have. Take everything out. Count the hangers. Count the clothes (sweaters, etc.) that don't go on hangers. Count the shoes. Then tell us.

That is small for more than one person. I would be tempted to try to find room inside the bedroom for a stand alone wardrobe or dressers for the folding stuff, and a rack for shoes.

Step one, take everything out. Take measurements and new pictures of an empty closet. Step two, fold, sort, and figure out if everything belongs in *this* closet. Step three, figure out if there are seasonal items that can be packed in a more space saving way and rotated. Step four, assess what hangs and what sits to determine what you need for shelves, shoe storage, full length hanging, and short hanging. Nothing goes back in until there's a plan. (Yes, the mess will be elsewhere, but if you start stuffing stuff back in, you'll lose some of your motivation to fix it properly, and you may not want to alter thing that are started, which will tie your hands for further planning ... or maybe that's a me problem.)

What is your version of remodeling this closet? Is it just getting reorganized? Is it getting a new closet system? Is it potentially gaining space from somewhere?

With such a small closet, I would remove anything that can be folded and find a drawer for it. T-shirts jeans sweatshirts.

I would look outside the closet and figure out how to make the most of underbed storage (flat bins), and more functional clothes-storage furniture.

You can measure your space on top of the rack, and purchase clear bins for things like hats and/or winter shoes (when it's not winter).

The easiest way to keep shoes from getting underfoot in a closet is to use a shoe rack. In this case, the shoe rack could be outside the closet.

Whitmor Resin 20-Pair Shoe Rack · More Info

majority of the things in the closet will be placed in another closet, which are seasonal items (Jacket, sweatshirts, suits) and the items at the top of the shelf will be folded and placed in drawers. My wife alone has more than 10 pairs of shoes so, I know we want to add a shoe rack outside of the closet going to happen. we’re just looking to have a better organized closet.

I wanted to address the shoe situation specifically--my solution has been to rotate shoes seasonally. Even in our bigger house, it's still a modest 1960s ranch that lacks the storage space of "modern" closets in newer homes -- despite still having way more closets than our old house--and in CA basements or attic storage is (as far as I've known) not common.

I box up out of season shoes and stack them in less-accessible area than my main closet. Same with clothes--we box up out off-season clothes and store elsewhere. Homes with room-sized walk in closets...I cannot imagine having that kind of storage it seems like a luxury.

So you maybe could consider the seasonal rotation of shoes/clothes.

I love those shoe cubbies. It’s basically a bunch of cubicles the size of a pair of shoes. Looks good and so practical. I think target has them. Regarding the closet. Throw out whatever you don’t use. As you said put all jackets in the seasonal closet. And then organize. Get pretty bins. Matching hangers. I like to color code but not necessary lol.

Okay, so if a large portion of the items are leaving this closet, what is staying that still needs to be organized here? It's hard to give recommendations for your remodel if we don't know what needs to be organized into this closet.

10 pair of shoes shouldn't require much fancy ... she just needs to decide on her favorite shoe organization (cubbies, boxes, shelves, et cetera).

It looks like you have shelves and a couple rods ... did you want to keep those and utilize them better or replace them?

How high are your ceilings? Our upstairs has 9' ceilings, yet the closets were built with one shelf. This left a high, but largely unuseable space. By adding another shelf, I was able to make better use of the available space.

The shelves are being replaced and going to find a better way to utilize the space that we have. we have a second shelve under the top shelves but wertr removing those as well. These are the shelves. the ceiling is about 9’ tall.