A cold air intake is a more direct air channel to the engine's intake; in place of the stock intake system, you have a system that gets air directly from the front of the car, feeding greater volume of air to the intake. In addition, since the air is being channeled from the outside instead of within the engine compartment, the air will also be cooler and denser.
However, modifications done to the intake must be balanced with modifications to the exhaust; the more air you can pull in, the more air you should be able to get out.
The transmission should be "hardened" to improve its reliability under the greater demands it will be put under, such as implementing auxiliary cooling as well as a high performance flywheel and clutch. You could even redo the gearing ratios to better match the characteristics of the engine as well as finding ways to improve the performance and durability of the shifter.
Brakes should be improved because you need to stop. Better brakes will function better and not fade as quickly and will stand up to the greater demands.
Suspension should be properly upgraded to allow for better handling and braking. Clipping springs to merely make the car ride lower is not enough, not to mention dangerous as this compromises the performance of the suspension system, negating the advantage of low center of gravity.
You also have to find ways to stiffen up the chassis to reduce flexing, which will also help to improve handling.
You may also consider stripping the interior to just the essentials. This means just the seats, restraints, dashboard, and instruments. This is done to reduce weight, putting more of the available power to get the car to move fast and to improve handling.
The mention of flame decals was a joke. This is in reference to people who try to make their cars *look* like they're fast from a purely cosmetic point of view instead of actually being fast.
There's lots to consider to make a car into something you could race instead of just the engine.
But, also consider that this can negatively affect the practicality of the car itself; turning it into something that can truly perform will be a compromise to various things, particularly comfort and reliability.
And, doing the job thoroughly and right will not only require expertise, but will cost you a good sum of money. And, in addition, because of the work and money that went into the car, you may be hesitant to really want to push it around because of fear if wrecking it.
Really think hard about whether you want to do this or not.