The bathroom is the only room in your house that you can guarantee everyone is going to visit sooner or later.  It's not a luxury it's a necessity, everyone has to go.  It's the only room in your house that your guests will ask directions to. 
It makes a lot of sense then, when you are making improvements to your home, to consider the bathroom as a very important target on your list because potentially it can make a very big difference. 

To my surprise it seems that many people don't put the bathroom top of their list when planning home improvements.  This could be because they think that it's too big a job or their bathroom is too small to do anything with.  This isn't necessarily the case. 
Remember that improving a small bathroom doesn't have to be about its physical size but more about it's apparent size and how you give the illusion of space to your visitors.  Choosing light colours, adding lighting around the edges of the bathroom and carefully placing a mirror or two are all inexpensive and relatively simple things you can do that can make a lot of difference in a small bathroom. Reasons for improving your home
The main reasons that most people undertake home improvements fall mostly into the categories below:

Repairs

Improving your living standards

Increase the value of your property

Energy efficiency

Just because you can

Lets take each of these and see how they apply to your small bathroom. 

Small Bathroom Repairs
Repairing leaky faucets, broken mirrors and cracked bathtubs are all things that you should be doing no matter what the size of your bathroom.  The fact that the room is small might mean that there is less to go wrong but it also means that it could be more awkward to fix.  There is no doubt that making repairs in the bathroom will improve your home to the benefit of your family and increase the value of your property. Improving your living standards
Adding and improving the features in the most used room in the house can make a big difference to your living standards.  Make the bathroom a place that you are happy to spend time in. Increase the value of your property
This is a very important reason for creating the best small bathroom design that you can.  When it comes to selling your property an impressive bathroom can make a very real difference.  If you are planning to sell up soon then you should pay particular attention to your bathroom. Energy efficiency
With a little thought with your small bathroom design you can make some energy savings and do your part for the good of the planet.  By installing an on-demand water heater in the shower and taking showers instead of baths you can reduce your electricity and water usage.  Replacing your toilet for a dual-flush type can also save water. Just because you can
Some people just like a change and there isn't anything wrong with that providing you have the money and the time. 
Remember that redesigning a bathroom no matter how small can make a big difference to your life.