there's too many triangles in your mesh. try to get as many four sided faces as you can. It'll give you a cleaner model as well as make the smoothed version look nicer. I think you could also get rid of a few lines and keep the same shape. It looks a bit dense in some parts it doesnt need to be in the unsmoothed version, but changing as much as you can to 4-sided faces should help with some of that. The nose is also really pointed, but that should be easily fixed.

Its looking good so far though. Just clean up your geometry a bit and you'll see a big improvement in how it flows.

So how are you modeling it? All poly? Nurbs to Poly? etc?

Keep up the good work...and make him smile! he looks sad :p