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Hello there

I am looking into creating my first website. As this website will be a dedicated sports forum using mybb forum software. I was wondering if anyone can show me what steps I need to make it happen as well as cost.

Obviously I am aware I would need to purchase a domain name (have one in mind which is available) but what would happen once I purchase one? Would it be a case of downloading mybb software once my domain purchase is complete?

Any help regarding this will be much appreciated

Thanks
http://docs.mybb.com/1.8/install/ - This will tell you everything you need to know.
thanks
You are missing another important part which is hosting.

Expect the domain you will also need to buy hosting.For a small website you can rent a vps for approx 5$ per month.

So you buy hosting , you buy domain , you upload mybb files to your hosting .That's basically it.

Read some guides on how to upload them ,set up dns and stuff.
Once you purchase a domain, you will need a server. A VPS or even shared hosting (shared would be worse than a VPS, with a VPS you manage services etc).

Once you have a server sorted, you will need to create an A record in your DNS to point to the server which will be hosting your forum. Changing DNS may take a few hours to propagate, so when you do change it and it doesn't update straight away, don't think you've done it wrong. Give it a bit of time first.
Have today purchased a domain and hosting from 123 reg

Would the next step be to install the latest mybb software before I am up and running?

thanks
as suggested earlier, you can follow MyBB installation documentation
yea download the latest MyBB package and upload to your website root directory. if you have any doubts about those steps, you can PM me if you want.

edit: beaten by .m.
You could try free hosting for experimenting your site and starting it up, then move it to a VPS or dedicated server when it starts getting more traffic.