Since you will be a small shop I would stick to a per diem which means a lot less accounting hassles. You then have a fixed cost for meals that is easily estimatable. If your employees want to eat cheap and pocket the rest then that is there perogative. Hotels should be in reason. Since you will probably be unable to negotiate great rates at the big hotels as a small shop you should specify a class of hotel. In other words we stay at Courtyards/Hampton Inns, or whatever you think is reasonable. Also you should specify an acceptable car class and whether employees are required to share if two or more are travelling together. I also think a 1 connection is acceptable. My company has an overly generous travel policy that probably freak out a small consulting firm, so I won't even go into it here. Also consider whether employees should get company credit cards or will they be required to use personal cards and submit for reimbursement.

PS - congrats on soon becoming a biz owner! ^