In most cases. the best next step would be to flush it down the toilet to avoid comtaminating the atmosphere.
Otherwise, assuming you are a Real Songwriting Genius, try to read some books on the Music Biz, and the legal aspects of contracts.
Also, I hear the real money is in what they call the "publishing rights", i.e. sheet music, or chord/tablature books. Do NOT give up these rights!
READ any contract offered, and if you do not understand, DO NOT SIGN! Take a copy to a lawyer and ask him to advise you. After you understand how they are trying to fuck you, make them change it per your lawyers recommendations.
Alas, if you are a newbie (AKA "Fresh Meat") you may have ZERO bargaining leverage, and may have to accept a bad deal in order to "break in" to the Biz.
El Lamo
Somewhere in LameLand
Life Sucks and then You Die