Do you create wire-frames before designing the website?

A Wire Frame is basically the "sketch" of your website, the same as the sketches you use to produce your logo or even painting. It is one of the first stages of designing your website. 

If you are working for a client, a wire frame will indicate to your client that your are an organized individual that take post production into consideration, which is a plus for you.

Wireframes also makes it clear to you and to your client the function of your website, how to navigate through your website and what possible content would be included in it.

In conclusion, producing a wireframe will be beneficial both for you and your client.

Yes, its bascially to help you organise and plan how your web site will flow and operate, its important to plan before you go ahead on creating a website as it helps people understand how your website works.

Also very simmilar to makeing a cake if you dont know how to make the cake or the  recipe who knows what its going to look or taste like :)

Indeed I do, they help us show an outline of my design to pitch to possible:

1. designers
2. investors
3. marketers

Entrepreneurs specially get into drawing a lot of wireframes.

Yes its1st step before going to real work its important to show client what you are going to do otherwise after lot of efforts when you came to client he may simple refuse all if they have something else in mind.