Recording a demo is of the utmost importance when it comes to securing a record deal. Even if your demo contains only three or four high-quality songs, you'll need some way of showing potential record label signers what your music is all about. Look up a local recording studio in your area for pricing info and availability, as the quality of such places is typically quite professional. UltimateSongwriting.com provides numerous suggestions regarding the submission/recording of your demo, including providing contact information on your demo and submitting demos that are high in listener quality.
Gain some exposure on the local circuit. Whether it be via open-mic nights at your local club or an opening gig on a weekend at a local live music venue, exposing your music to as many people as possible is vital in securing a record deal. This may help create buzz for your music, and buzz--particularly in today's Internet-friendly age--spreads quickly. Who knows--it might even lead to record companies showing interest in you before you even have to solicit interest from them. A&R Online suggests perhaps securing a booking agent to assist in booking shows, though this isn't necessarily a precursor to landing a record deal.
Obtain contact information for A&R professionals for the labels you're interested in. Information for these agents--both for major and indie labels--is typically available online. Also, most major labels have a policy written online that instructs potential signees how to submit their demos. But do your research and target those labels who would be most interested in releasing and marketing your music. For instance, a country musician shouldn't solicit a hip-hop label, nor should a rock band solicit a classical music label.
Be persistent. Several online outlets suggest checking in with labels shortly after sending in your demo to ensure the demo reached the proper parties. Find out if that party has yet listened to your demo, and if he had any thoughts. The record industry is competitive, and those musicians who stand out have the best chance of securing a deal.
With major labels in financial despair, coupled with the availability of music online, some bands have taken to starting their own labels to release their music to the masses, though it does provide certain limitations. For instance, you'll have to devote time to getting your label up and running, while focusing on your music as well. Plus, as your label grows, you'll need to set about finding new acts to sign.