Same goes for production. Elaborate production isn't all that important if you're submitting a demo to a record label.
It's the same deal as with packaging: record companies aren't interested in how you produce or package your stuff-because that's what THEY'RE gonna do. What they can't do, and don't do, is write songs.
Record companies want good material, first and foremost. They know that if the music is any good, they can produce, package, and promote it...because that's what they do.
There was one small label I remember looking at, and in their 'submissions requirements' they actually stated that they didn't want to receive anything that had been packaged and marketed already-even locally. They were not interested in re-releasing anybody's self-released CD.
Basically, the only area that record companies are interested in that you can work towards on your own-is SALES. If you're out there on your own, successfully making and selling your own records, record companies will take notice, and they'll want a piece of the action. How did Nirvana get signed to Geffen? because they were selling records for Sub Pop, and getting great press and college radio airplay. They were also touring all over the place already, had a worldwide fan base. Everybody knows that, right?
Well, almost the same goes for Jane's Addiction (who were selling records for the XXX label and getting a lot of attention in the L.A.press and college radio airplay everywhere).
Pretty much the same goes for Motley Crue, who put out their own record and it sold like hotcakes...at a time when 'Glam Metal" was thought to be extinct.