I've been making a lot of my own sketchbooks for several years, and this is how I do it currently. It works pretty well without big, expensive equipment so I thought I'd share how I do it for people who want to try book binding without a big investment. I'm not a professional, so this probably isn't the "right" way to make a book, but I've been happy with my results and I think you will be too.
You will need:
Paper - I like to use watercolor paper because I do watercolor, but anything will do as long as it makes you happy. My first books were made with copy paper. This example is 9"x12" 140 lb cold press watercolor paper.
Thread - Something sturdy, like linen thread or upholstery thread. I'm using the synthetic sinew I use for leather, but waxed linen is ideal and traditional.
Glue - PVA glue is ideal, but for this example I'm using tacky glue because I'm out of PVA.
Cover Material - Back in the day this would be wood, but I'm using the back of my watercolor pad.
Material to Cover the Cover - Paper, leather, cloth, whatever floats your boat. I'm going to use paper for this one.
Cardstock - This is for the spine. I'm using the cover of my watercolor pad.
Book binding ribbon - You can use regular ribbon or strips of fabric too. I'm going to use some plain white ribbon.
Bookmark ribbon (optional) - Any ribbon.
Masking Tape - I'm using duct tape, but masking tape is better.
Thin fabric - I'm using a piece of muslin.
Awl - A push pin would also work.
X-acto Knife - or blade of preference.
Needle (Not pictured) - Something that your thread fits through
A surface you don't mind damaging - Like an old cutting board
Scissors - (though you could just use your knife)
Bone folder - Or another tool for creasing paper
Phone Book (Not Pictured) - This is how I improvise a book cradle.
Step 1: Prepare Your Signatures
A signature is a group of pages that get sewn together. My paper is thick, so I'm using two sheets of paper for a signature. If I was using copy paper I would probably use six sheets.
To make your signatures, fold all your sheets of paper in half and crease them. Then put one folded sheet of paper inside the other, and you have a signature. Bravo! Repeat for the remaining pages.
It's good to have an even number of signatures, though you can make an odd number work.
Step 2: Poke Holes in Your Signatures
First mark where your holes will go on one of your signatures. You will need a hole at the top, a hole at the bottom, and two holes for each ribbon you are using, one on each side of where the ribbon will be. I used two ribbons, for a total of six holes.
Then use your poking tool (Awl, push pin, etc) to poke those holes you marked. You now have your master signature, which you can use as a template to poke holes in the rest of your signatures. Make sure they're all identical.
Step 3: Sew the First Signature
Thread your needle, and arrange your ribbons to line up with the holes you poked in the signature. In the pictures about half the length of the ribbon is under the book, you want to have at least a few inches on each side of the book once all the signatures are sewn on.
I also find it helpful to tape the ribbons in place on the cover side of the first signature, but that's optional.
Sew in the first hole, leaving a tail of about six inches, then out the second hole, over the ribbon, in the third hole, out the fourth, over the second ribbon, in the fifth hole, and out the sixth.
Step 4: Sew the Second Signature
Put a second signature on top of the first one, being careful to properly align the holes.
Sew in the hole directly above the sixth hole of the first signature, and out the next. Now, instead of simply going over the ribbon I stitch up through the stitch here on the first signature. Then stitch into the next hole, out through the next, and repeat on the next ribbon. Stitch into the next hole, out through the last, and tie a square knot with your sewing thread and the tail you left before.
Step 5: Sew the Rest of the Signatures
Sew the rest of the signatures like the second, but when you come out the last hole of each signature stitch between the last two signatures, looping your thread around the stitch connecting them.
If you have an even number of signatures, you can tie off your sewing thread with a square knot to your original tail after you've sewn your last signature. Then trim the ends and remove the tape if you used it.
Step 6: Trim the Ribbons
You may not need to do this, just make sure your ribbons are shorter that the width of your cover.
Step 7: Glue on the Fabric and Bookmark
Apply glue liberally to the spine, then carefully apply your fabric, cut to the length of your book. If you're adding a bookmark add a bit of glue on top of the fabric and stick on your ribbon. Let it all dry.
Step 8: Cut the Cover
Cut your cover to size of a page of your book. My cover was the back of the pad of paper, so I just had to cut it in half.
Step 9: Make the Spine
Now cut a piece of card stock as tall as your book and a few times wider than the uncovered book is thick. Fold it in half and crease it. Then put it on your uncovered book with the crease at the back of the spine. Fold it over the spine and crease it so the width between the creases is the thickness of your book.
Step 10: Assemble the Cover
Glue the cover boards onto the spine, about an eighth of an inch outside the creases. Then glue on your paper or fabric or whatever you're using. Trim the corners at a 45 degree angle so you can fold them over and glue them down neatly. Smooth everything down carefully after gluing, and let dry.
Step 11: Assemble the Book
First, glue the book ribbons to the outside of the first and last signatures. Then glue down the fabric on top. Now you'll put glue on top of the fabric, covering the first and last page completely, but not the spine. Carefully put your book in its cover, and weight it closed so it will dry flat. I used some cutting boards and a phone book.
When your book is dry you're done. I hope you love your new book, and that this instructable was helpful. If you have any questions I'll do my best to help. Happy book binding!