How to increase fast backup and restore of 500GB database using mysqldump?
But the link also recommends XtraBackup from Percona, which is faster, no locks on tables that are already in use and gains no time for restoration. For 500GB of data I prefer Percona XtraBackup to be quick and efficient unless you want to convert them to innodb_file_per_table model if it wasn't from the existing DB server. Below link explains on how to proceed. 

http://www.percona.com/doc/percona-xtrabackup/innobackupex/creating_a_backup_ibk.html