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Step 1
Watch how the coach interacts with the kids. If s/he seems uncomfortable around kids, or barely talks to them... s/he might be a bad soccer coach. Keep watching though, some people are just naturally shy so if s/he seems uncomfortable during the first couple of practices, s/he might just need time to warm up to the kids.
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Step 2
Pay attention at practice. Does s/he give equal time to teaching skill drills and actually teaching the kids how to play the game by having them play mini-games? If s/he devotes entire practice to one or the other, or repeatedly has them practice the exact same skill drill at every single practice... s/he might be a bad soccer coach. A bad coach doesn't understand that kids need to be taught how to play properly; s/he may assume that kids know what s/he knows, and doesn't take the time to teach. A good coach understands the importance of imparting a broad range of skills and rules, teaching kids all the important things they'll need to know on the field during games.
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Step 3
Watch the coach during the game. At game time, does s/he stand on the sidelines with their hands in their pockets? Or does s/he say common sense things that the kids already know? (i.e. "The other team has the ball!") If so... s/he might be a bad soccer coach. A good coach will encourage the kids while they play, and take advantage of half-time to discuss strategy and things to work on.
