Should have done 1 reply in order..
Draw around the backbox onto the wall to give myself a guide (using a spirt level and tape measure to make sure it is the correct height etc
The hole will end up bigger than the line. Your idea is fine, but before drilling I'd take a bolster and lightly tap a groove into the wall, just inside the line, to give somewhere for the drill point to settle into.
Chris - if you are really struggling, this is a useful thing:
It's a little galling to use in that you first have to drill and plug 2 holes in the wall which a little while later end up in the debris, but it does guarantee a good result if you're going to stitch drill anyway. And it stops you giving into the temptation to try and use your masonry drill like some kind of router to speed things up - yes, you know who you are.
Other tools you might use are a scutch chisel, or, depending on what the walls are made of, there are various cutting things you can put into an SDS drill which has rotostop - Armeg cutters for example,
(great if you have soft aircrete walls, SFA use on hard brick)
There's another type which has lots of teeth which hammer into the wall, and then there are reciprocating saws, there are probably blades you can get for Fein Multimaster type tools, and there are angle grinders and chasing tools.
But a good rule of thumb to take on board is that the amount of house-filling dust you get is in inverse proportion to the speed with which a power tool does the job. If you want the least mess just have at it with a bolster or scutch chisel and a club hammer.