I enjoy shooting with small flashes because it's just easier to travel with and set up. I can practically pull a three piece lighting kit out of a backpack. The problem you'll run into with small flashes is trying to diffuse it with light modifiers. Softboxes are a popular choice for portrait and beauty photographers, but normally you need to decide on the proper speedring - Broncolor, Elinchrom, Bowens, Calumet, Alien Bees? The list goes on and on. The Westcott Apollo Orb octagon softbox (above) is perfect for portable flashes (speedlites), but can also be used with larger studio strobes without speedring adapters. The umbrella-like design sets up quick and is easier for Photographers who travel and need to shoot on location. A slit in the bottom of the softbox allows the stand to be placed through the center covering the entire flash unit. Unfortunately besides being too big at 43" inches, the $130 dollar softbox is also out of stock.
32" Umbrella Softbox for Portable Speedlite Flash
Searching around for the equivalent, I happened upon one company making a smaller (similar) design at about 32" and obviously only runs for one quarter of the Apollo price. Needless to say, i'm already all over it and ordered myself a few pieces. (light stand and flash bracket not included). Remember that once you have your flashes tucked away, in order to fire them off, you'll need at least a good cheap set of wireless triggers like the Yongnuo RF-603s (found here). There are also rectangular versions of this speedlite softbox, that also opens up just as easy as an umbrella.
Umbrella Softbox Brolly Reflector
You can find these clever Octagon softboxes following the link (click here).
Octagon Umbrella Softbox for Portable Studio Flash
