Miniaturized spacecraft and satellites require smart, highly efficient and durable low-thrust thrusters, capable of extended, reliable operation without attendance and adjustment. Thermochemical thrusters which utilize thermodynamic properties of gases as a means of acceleration have physical limitations on their exhaust gas velocity, resulting in low efficiency. Moreover, these engines demonstrate extremely low efficiency at small thrusts and may be unsuitable for continuously operating systems which provide real-time adaptive control of the spacecraft orientation, velocity and position. In contrast, electric propulsion systems which use electromagnetic fields to accelerate ionized gases (i.e., plasmas) do not have any physical limitation in terms of exhaust velocity, allowing virtually any mass efficiency and specific impulse. Low-thrust Hall thrusters have a lifetime of several thousand hours. Their discharge voltage ranges between 100 and 300 V, operating at a nominal power of <1 kW. They vary from 20 to 100 mm in size. Large Hall thrusters can provide fractions of millinewton of thrust. Over the past few decades, there has been an increasing interest in small mass, low power, and high efficiency propulsion systems to drive satellites of 50-200 kg. In this work, we will demonstrate how to build, test, and optimize a small (30 mm) Hall thruster capable of propelling a small satellite weighing about 50 kg. We will show the thruster operating in a large space environment simulator, and describe how thrust is measured and electric parameters, including plasma characteristics, are collected and processed to assess key thruster parameters. We will also demonstrate how the thruster is optimized to make it one of the most efficient small thrusters ever built. We will also address challenges and opportunities presented by new thruster materials.