1. Power Off the VM, Select the VM, and Select File, Export, Export OVF - this will export the VM "as is"
if you want to create a smaller VM, change the size of hard drive including partition
2. [VMware vCenter Converter Standalone
out of both methods
I would recommend and use VMware vCenter Converter Standalone 5.0
and if you do use VMware vCenter Converter Standalone 5.0, and you want to make your transfers 60% faster