All worlds have societies and within that different classes. There is always an underdog somewhere. Can these people/beings ever make it to the top? Are they suppressed? Was there a historical reason for that suppression? Can you envisage the different types of people/being making up your world? How does your society organize itself? I started with working out how the Fairy Kingdom was governed "nationally", then divided it into 7 regions and then worked out how the major towns governed themselves within their respective region. The Queen's Council comprises 22 beings, each representing the different species in this magical realm that are officially recognized. Each of them are the ultimate spokesbeing for their species. It is expected they will represent their species well and not let the side down. There are 2 exemptions from the Council - there are no representatives for the pixies and imps.
Do alliances form between the different groups on your world? In my take on the Fairy Kingdom, the other species look down on the pixies and imps for their continual fighting, refusal to take magic that seriously and their use/wasteful use of magic on practical joking etc. To date the pixies and imps are deliberately stopped from having any kind of representation on the Council. If the pixies and imps stopped fighting each other for long enough, they would realise how discriminatory this was. As it is, it is too easy for the other groups to claim the sprites (as the pixies and imps are generally known) are not worthy of politicial representation.