Can you reuse mycelium?

Reuse it, of course! All that's keeping your mycelium from producing more mushrooms is a lack of food, so you can just feed it some more and you will get more mushrooms! There's some important caveats. You can't just recycle your mycelium forever, because mycelia do age (just like us!).

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Then, how do i start a small mushroom farm?

Can you grow a mushroom from a dried mushroom? Mushrooms don't grow from seeds or bulbs like most plants we grow and harvest for food; they grow from spores. The spores in mushrooms that have been dried out using various techniques like dehydrators or excessive exposure to direct sunlight are dead and will not grow new mushrooms.