I wish you the best, I really do. But I'll throw in my thoughts from my culinary background.
Don't let what I say get you down, use it to motivate yourself to prove your sauce deserves a place in the market. I don't know how serious you are, and if you even want to take it beyond hobby type work.
The world doesn't need another bbq sauce, if you look around the food industry is saturated. As part of your business plan you need to figure out how to convince a consumer that yours is worth a try. Why should say Kroger, give your product the a moment of their time? Or even the mom and pop down the street?
Most bars and restaurants either make their own in house, have it contracted out, or buy from big food distributors. Labor is expensive, equipment needs maintained, food cost is a major consideration and often one of the only expenses that they can cut corners on. Also, quite regularly some one walks through the door with a "snake oil" that they think is the next greatest thing. Just getting past the hostess to talk with the manager will be quite a feat. I never knew anyone who was given the time of day. The power of the internet makes it so that anyone can do their own research and doesn't need to talk to a traveling salesman.
By winning competitions you're trying to get the attention of larger distributors, cause let's face it, a few hundred sales at an event even every other week isn't going to pay the bills. Again, you'll need to stand out, a great label helps tremendously, winning personality, drive and motivation, it will take more than just good taste. You'll need to plan on alot of road time and go to every event you possibly can. Can you do this and still keep your day job?
Social media!!! We live in a different world and consumers want to be able to look you up, see what makes you special. Pound Facebook, set up a quality website and talk to web designers about how to make your product come up in search engines. Make youtube videos...more videos...and even more... Look in to distribution through Amazon, consumers are lazy and if you have an Amazon link they can easily follow with lots of good reviews they may take the plunge.
Work with fund raising. At culinary school we had a retired fireman turned chef. He invented a bbq sauce that the fire station sold to raise funds annually. Back in the 90's Kraft Foods approached him and offered him millions for the recipe. But they wanted exclusive rights and he wouldn't be able to sell it for the fire dept any more. So he turned them down, as it was worth more to the department. I mention this as a possible way to get your name out there, and often people will take a chance on a new product if it's for a good cause. I have a copy of his recipe and it really is a good one.
Definitely do the LLC and spend the money to trademark. A caterer I worked for almost got his business scooped. He didn't incorporate or trademark and was successful for several decades. I found out that a competitor trademarked HIS company logo and business name, but was delinquent on taxes so my boss was able to lawyer up and take back his name and trademark. It also protects your personal life from lawsuits. Worst case is someone gets sick and tries to take your home, bank accounts, retirement, etc.
Good luck, I hope you find success.
