As a professional photographer or an enthusiast even those who have an SLR
don't feel like lugging them everywhere. There is some considerable
'tonnage' if you bring your whole SLR system with you. The little point
and shoot cameras offer you an alternative.
1. Read the manual.
Although many technophiles pride themselves on not having to read their
manual, it will certainly improve your chances of getting a decent
picture. You also might be surprised at what your camera actually can
do.
2. Know the menus. Flip
through your various options on your camera and look at the manual
(again!?). Figuring out how to do something when you need to do it is
not fun.
3. Take photos when they don't matter. This allows you time to get used to your camera and know its abilities and limitations.
4. Learn the 'standard' rules of composition.
You need to learn the rules before you can stretch/break them. As well
as the rule of thirds also consider including close, medium and long
distance elements to add interest - single distance images can appear
flat.
5. Fill the frame with your subject matter. No, they
don't want a picture of them in a long hall. They want a picture of
them while using the hall as a backdrop. The difference here is taking a
picture of everything and focusing your camera on your 'target'.
6. Consider different angles. Get on the floor with your camera...crawl around on the ground, etc.-
7. Avoid using the flash unless necessary. Learn how to get around using the flash. -
8. Diffuse the flash. If you must use the flash, try to come up with a way of diffusing it. -
9. Look for a more powerful optical zoom and don't worry about the digital zoom. -
10 Don't use the digital zoom. It will show up in the quality (or lack thereof) of your photograph. 
11. Finished.PHOTOGRAPHY: How to Get the Most from Your Point and Shoot Camera
SOURCE: wikihow.com