A few points to make.
To have your own AOC does not necessarily need a large staff. As far as I am aware a one-man organisation can hold an AOC for certain operations, as envisaged here. It also need not cost more than Steve is considering, especially as the CPL/IR, with ATPL groundschool, could cost less than £15,000 for a single-engine, if he doesn't go to the most costly schools.
I vaguely considered this, chatted with a friend ex-CAA employee, who recalled that an AOC for a light-aircraft operation was not terribly expensive. Ex-CAA examiners and inspectors are available to help as consultants in putting together the paperwork. Things like ops manuals are fairly standard, with relatively little change from one company to the next in the same type of operation, so the work should not cost very much.
I'd say go for it! If you want me to try and contact some people who know more send me a PM. Don't see them regularly at the moment, but might still have contact details.